Australian Stocks to Watch – Macquarie Group (MQG)
Macquarie Group (MQG) is a blue chip stock and is a diversified financial services provider in banking, financial, advisory and investment services.
MQG sounded another profit warning today, stating at its AGM that earnings across a number of its divisions are expected to fall in FY11.
Specifically, earnings at its Securities, Capital, and Fixed Income, Currencies and Commodities divisions fell in the 1Q11, and are not expected improve unless market conditions recover.
Furthermore, MQG stated that the $29 billion in cash sitting on its balance sheet is impacting on its earnings.
On a brighter note, earnings from MQG’s other divisions are expected to improve on their FY10 results.
MQG shares tanked 3.1% last Friday on the news.
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