Macquarie Shares Reach One-Year High as Profit Forecast Raised

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Macquarie Group Ltd. shares climbed to their highest in a year after the Australian investment bank raised its earnings forecast for the second time in two weeks.

Full-year profit will rise 5%-10% as North America’s extreme winter weather boosts demand for its gas and power services, the Sydney-based bank said in a statement Monday. Earlier this month, Macquarie said profit in the year to March 31 will be only “slightly” down, as opposed to forecasts of a “significantly” lower result at the end of the first half.

The stock rose as much as 4.3% in early Sydney trade to A$148.39, the highest since Feb. 21, 2020.

“Extreme winter weather conditions in North America have significantly increased short-term client demand for Macquarie’s capabilities in maintaining critical physical supply across the commodity complex and particularly in relation to gas and power,” the bank said in the statement.

“Macquarie’s Commodities and Global Markets business physically ships gas on the majority of major pipelines across the U.S. and over time has built capacity to support clients by delivering power and physical commodities to help them meet the unexpected needs of their customers,” it said.

The new forecast implies full-year net income of about A$2.87 billion ($2.3 billion) to A$3 billion, well above current analyst estimates of A$2.55 billion, according to data compiled by Bloomberg. Last year, profit fell 8% to A$2.73 billion, ending a seven-year run of earnings growth.

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