Macquarie’s (MQG) uncharacteristic miss
Macquarie (MQG) -4.68%
Hit today on a profit downgrade with the investment bank and infrastructure manager saying first-half profit will be down 35% amid the “uncertain” speed of recovery from the coronavirus pandemic. The market was already pricing in a 25% decline for the half however todays update is another leg down on that expectation, albeit, MQG have a history of under promising and over delivering. They say market conditions are likely to remain challenging, especially given the significant and unprecedented uncertainty caused by the worldwide impact of Covid-19 and the uncertain speed of the global economic recovery, plus they went onto say they’re unable to provide “meaningful” earnings guidance for the full year. The forecast implies net income in the six months ending Sept. 30 will fall to about $950 million, from $1.46 billion a year earlier and below the $1.1 billion expected. We’ve flagged MQG as a likely sell in the Weekend Note on Sunday however unfortunately we did not get the opportunity.
Macquarie (MQG) Chart
