Macquire Group (ASX:MQG) (ADR:MQBKY) will be presenting at the CLSA Investors’ Forum in Hong Kong this week and have provided an update on the company’s short term outlook statement from July 2015.
Following the short term outlook in July, Macquarie continues to expect FY16 to outperform FY15. As a result of the declining AUD, improved trading conditions across most businesses including Macquarie Securities and Macquarie Asset Management (MAM), which benefited from strong performance fees, Macquarie expects the 1H16 results to be up approximately 40 per cent on 1H15, subject to the completion rate of transactions and the conduct of period end reviews. MAM is expecting lower performance fees in 2H16 when compared to 1H16, however results for 2H16 are expected to be broadly in line with 1H16.
The company acknowledges that its short term outlook remains subject to challenges such as market conditions, the impact of foreign exchange, the cost of its conservative approach to funding and capital and potential regulatory changes and tax uncertainties.
Over the medium term the company has stated that it is well positioned to deliver superior performance. The group has deep expertise in major markets and it continues to build on its strength in diversity and adapt its portfolio mix to changing market conditions. The company is experiencing ongoing benefits from cost initiatives, its balance sheet is strong and conservative, and it has a proven risk management framework and culture.
MQC has gained over 32 per cent in the last 12 months. Following a favourable FY15 outlook in January, the company’s share price rallied over 50 per cent, before finding some resistance around the $83 mark. The recent decline was not company specific and mostly due to declines in the wider stock market. Following today’s outlook update, MQC has gained 2.4 per cent as of 10.30 AEST.
Author: Ben Visser
Sep 14, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.