Macquarie Group's (ASX:MQG) third-quarter earnings slowdown may hinder its ability to meet full-year guidance, according to a Tuesday report by the Australian Financial Review, citing investing and financial firm UBS.
UBS noted Macquarie's Q3 earnings were weaker than expected, with a cash net profit after tax (NPAT) of AU$9 million, flat year-on-year, following a strong first half, where Macquarie posted a 13.9% year-on-year increase in NPAT to AU$1.6 billion.
The investment firm now predicts that the MQG will need to achieve AU$1.2 billion in profit during the fourth quarter to meet its full-year cash profit forecast of AU$3.8 billion.
Despite the challenges, UBS said that Macquarie remains confident in its ability to hit this target.
Shares of MQG rose 2% at market close.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.