Macquarie Group (ASX:MQG) is Australia’s leading investment bank, and one of the biggest companies in the Australian share market.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

Today MQG cut its 1H12 profit guidance due to difficult trading conditions at a number of its key divisions.

MQG noted that the Macquarie Capital, Macquarie Securities and Fixed Income, Currencies and Commodities businesses were all suffering from the recent market volatility.

1H12 net profit is forecast to be lower than the prior corresponding half’s $403 million result.  However, FY12 earnings were still expected to top FY11 due to an improved second half.

The FY12 outlook was predicated on no further deterioration in market conditions.

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Macquarie Airports or MAP Group (MAP) is one of the world’s largest private airport owners and operators with a core portfolio of three major airports – Sydney, Copenhagen and Brussels.

In July 2009, MAP announced plans to split from its parent company Macquarie Group (MQG) in a bid to cement its independence, which was applauded by the market.

MAP has managed to hold steady in the face of global economic headwinds.

Natural disasters, higher oil prices and adverse currency movements are some of the challenges MAP has been facing.

MAP has managed to ride out these turbulent times helped by a strong operational model. Continued cost management is driving operational leverage.

The company’s airports have performed particularly well whilst MAP has also benefitted from a gradual restoration of airline capacity, continued delivery of new routes and services and revenue initiatives and productivity gains.

Mapping profits

In February, MAP reported a FY10 net profit of $100.8 million, swinging from a $572.7 million loss from the prior year.

Proportionate earnings grew 19.3% supported by 6.9% traffic growth. EPS was up 10.9% to 23.9 cents per share.

Revenue increased 6.3% to $1 billion, with strong traffic growth from Sydney and Copenhagen offsetting the negative impacts of last year’s European ash cloud.

The group’s balance sheet was also in healthy shape, with no debt maturities until December 2012 and around $830 million of cash.

MAP was bullish about the 2011 outlook, saying it expects traffic growth across all of its airports supported by the launch of new routes and services.

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Traffic numbers

For the first quarter, most of MAP’s segments delivered solid operational growth. Brussels was a standout, with a 6.7% rise in traffic numbers.

The world’s fastest growing economy, China, became Sydney’s third largest inbound market.

Map also experienced significant growth in Copenhagen commercial revenues as a result of the repositioning projects implemented in 2010.

With new debt facilities at Copenhagen, MAP’s capex programme is fully funded until March 2015.

Sydney continues to enjoy a strong outlook related to both demand and supply side passenger traffic drivers.

MAP sounded a positive outlook, saying that all of its airports are in excellent condition and that its current growth initiatives are likely to yield earnings and distribution growth going forward.

Looking ahead

MAP will benefit from increasing aircraft technology delivering more seats at a lower cost.

New and announced capacity increases will continue to drive growth, particularly in the long haul segment.

Its EBITDA margin increased from 66.9% in 2009 to 70.4% in 2010. The company is looking to consistently improve this figure which would result in increased profitability.

MAP is also enjoying strong traffic growth at its key airports which bodes well for future earnings.

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Macquarie Group (MQG) is Australia’s largest and leading investment bank and is considered among the market’s blue chip stocks.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

On 29 April, MQG reported a 9% fall in FY11 net profit to $956 million, slightly ahead of its previous guidance of a $947 million profit.

MQG blamed the poor result on subdued equity market activity and higher costs.  Earnings did recover in the 2H11 though, with profit rising 37% from the 1H11.

The group also declared a final dividend of $1.00 per share (unfranked), which was ahead of analyst estimates of an 87.6 cent dividend.

Macquarie Group said it was more optimistic about the FY12, although the outlook was dependant on market conditions and the performance of its investment banking division.

Nevertheless, it will be one of the stocks to watch if market conditions ultimately do improve.

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Macquarie Group (MQG) is Australia’s largest and leading investment bank, and is widely considered among the blue chip stocks.

MQG has evolved over time into a complex portfolio of businesses which include banking, investment banking, asset management and private equity.

On Friday, MQG posted its first half results. First half net profit fell 16% to $403 million (from $479 million) beating previous guidance of a 25% drop.

Should market conditions continue to improve, MQG should report FY profit in line with the prior year.

Considering MQG reported FY earnings of $1.05 billion last year, second half earnings of $647 million are required to deliver that FY result.

MQG declared an interim dividend of 86 cents a share, in line with the interim dividend from last year.

The results and comments were well received by the stock market, which saw MQG shares finish the session up a whopping 4.8%.

Macquarie Group (MQG) is Australia’s largest investment bank, and is a leading provider of banking, financial advisory, investment, and funds management services.

It is also one of the main blue chip stocks in the share market.

MQG recently advised that it expects a 25% drop in 1H11 earnings from a year ago due to weak trading conditions in most of its markets.

MQG advised that activity was being hampered at its Securities, Capital and Fixed Income, Currencies and Commodities divisions, and that uncertain conditions were making short-term forecasting difficult.

Despite the downgrade, MQG maintained that FY11 earnings are expected to be broadly in line with FY10 assuming more normal market levels.

MQG shares slumped 4.7% following the announcement, and it will remain as one of the stocks to watch in coming months given that further profit downgrades cannot be ruled out.

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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Macquarie Group (MQG) is Australia’s largest investment bank, and is a leading provider of banking, financial advisory, investment, and funds management services.  It is also one of the largest companies in the Australian stock market.

Recently, MQG announced its full year results.  FY10 net profit rose 21% to $1.05 billion, slightly exceeding analyst expectations of a net profit of $1.02 billion.

Driving the increase was a solid performance across MQG’s securities, fixed income, currencies, and commodities divisions, as well as a reduction in impairments charges.

Of concern, return on equity was largely flat at 10% while capital was $4 billion in excess of regulatory requirements, suggesting that MQG needs to ramp up the deployment of its surplus capital.

Although management maintains an uncertain market outlook, it still expects improved operating results across all of MQG’s businesses in FY11.   A final dividend of $1 per share was declared.

MQG’s strong profit result was widely cheered by stock market participants, with its share price rising 4% on the day of the announcement.

Australian Shares Macquarie Group (MQG)                                                 30 April 2010

Macquarie Group (MQG) is a leading investment bank with a market capitalisation of $16 billion. It provides banking, financial advisory, investment and funds management services to both retail and institutional clients.

In Australian share news, MQG announced its full year results today.  FY10 net profit rose 21% to $1.05 billion, slightly exceeding analyst expectations of a net profit of $1.02 billion.

Driving the increase was a solid performance across MQG’s securities, fixed income, currencies, and commodities divisions, as well as a reduction in impairments charges.

Of concern, return on equity was largely flat at 10% while capital was $4 billion in excess of regulatory requirements, suggesting that MQG needs to ramp up the deployment of its surplus capital.

Although management maintains an uncertain market outlook, it still expects improved operating results across all of MQG’s businesses in FY11.

A final dividend of $1 per share was declared.

The Australian share price for MQG has seesawed since October 2009, trading between $45-53. MQG share price last closed at $50.29.