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(Sharecast News) - Shares in CMC Markets surged 15% on Thursday as the financial services company said it expected fiscal 2027 net operating income to beat forecasts after posting a rise in profits for the 12 months to March 31.
It now expected a rise of at least 17% to 460m - 480m compared with company-compiled analyst expectations of 385.5m.
Pre-tax earnings grew 20% to 101.3m, although this was below forecasts of 106m due to remediation charges in Australia after a regulatory review, and net operating income 15% to 392.6m driven by volatile markets.
Institutional and business-to-business income continued to scale during the year, supported by strong momentum from the neobank API partnership and ongoing diversification of the group's earnings base, CMC said on Thursday.
It produced a record performance in its Australian stockbroking business, with net operating income of AUD $140.3m, up 32% year-on-year, supported by continued growth in client activity and assets under administration.
Group core earnings rose to 117.8m from 103.4m, with strong performance from treasury management and capital markets which delivered disciplined yield and liquidity optimisation, including approximately 5.5m of treasury-related trading income.
"The group has made a positive start to FY2027, with net operating income supported by continued momentum across institutional and B2B partnerships, an increasingly diversified product offering and sustained client activity," the company said in a statement.
Reporting by Frank Prenesti for Sharecast.com
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