ASX 200 midday update: Westpac update, Breville and Magellan sink

It has been another busy day for the ASX 200…

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another disappointing decline. The benchmark index is currently down 0.75% to 7,524.6 points.

Here’s what is happening on the ASX 200 today:

Westpac Q3 update

The Westpac Banking Corp (ASX: WBC) share price is trading lower on Tuesday after the release of its third quarter update. Although the bank released an update that was largely in line with expectations, concerns over margin headwinds and higher expenses are weighing on its shares. Goldman Sachs commented: “…the fact management explicitly reiterated its 2H21 considerations in relation to NIMs and expenses, suggests that pressure on both these line items might be greater than what is currently reflected in consensus forecasts.”

Breville shares lower on supply chain concerns

Breville Group Ltd (ASX: BRG) shares have come under pressure today after its strong profit growth was overshadowed by supply chain concerns. For the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. This was ahead of its upgraded guidance. However, this was offset by supply chain concerns, with management warning that “supply chain disruptions drove a restricted inventory position” at the end of June.

Magellan share price sinks after profit decline

The Magellan Financial Group Ltd (ASX: MFG) share price is sinking after the release of its full year results. This morning the fund manager revealed a 33% decline in net profit after tax to $265.2 million. This was despite its average funds under management (FUM) increasing 9% to $103.7 billion in FY 2021. Weaker performance fees weighed on its result.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Steadfast Group Ltd (ASX: SDF) share price with a 4% gain. Investors have responded positively to its results and the acquisition of insurance broker Coverforce. The worst performer on the ASX 200 has been the Magellan share price with a 9% decline.

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