ASX 200: CSL 1H 2023 earnings preview

When will CSL report its latest earnings?

CSL is scheduled to report its 1H2023 earnings on Tuesday, February 14th, 2023 AEDT.

What should traders look out for?

CSL Limited (CSL) is Australia's largest drugmaker, one of the world's largest biotech companies, a leader in flu treatments and plasma protein therapies, and a leading provider of in-licensed vaccines.

CSL is the third largest company in the ASX 200, only behind BHP and CBA. It has an index weighting of ~6.8% and sits under the ASX Heath Care Sector.

Following the acquisition of Vifor Pharma (a Swiss biotech specialising in renal disease and iron deficiency), CSL has a bigger footprint within the industry and a more diversified earnings stream than ever before.

Covid-19 provided a headwind for CSL's supply chains and the collection of plasma, an essential raw material used to produce many of CSL's therapies, which accounts for almost half of CSL's sales.

However, with Covid-19 now mainly in the rear vision mirror, plasma donations in the US are rising, supported by an increase in plasma collection centres and as donors use payments to offset rising living costs. The increase in collections has come despite labour shortages.

Increased collection volumes will help accelerate CSL’s Behring business which develops and manufactures treatments for bleeding disorders, immune deficiencies, and other rare diseases.

CSL earnings – what to expect

CSL’s earnings are heavily screwed to the first half of the year and will be boosted by the Vifor acquisition. There is also the possibility of a $ 200m gain due to movements in the currency.

Full Year NPAT is expected to be in the range of US$2700-$2800m, with approximately US$1650m coming in the first half. The company is expected to pay an interim dividend of US$1.08 per share.

CSL revenues

CSL shares technical analysis

After breaking out of a long-term trend channel in early February, CSL failed to extend the move above the strong layer of resistance at $320, coming from November 2021 and November 2020 highs.

Since then, the share price of CSL has fallen back into the safety of its long-standing trend channel, postponing, for now, a test of the all-time $342.75 high.

This leaves the share price of CSL delicately perched above a layer of horizontal support at $305/300, and if it falls below there, it would warn that the break higher has failed and of another round of sideways price action within the trend channel.

CSL daily chart

Summary

CSL is scheduled to report its 1H2023 earnings on Tuesday, February 14th, 2023. The market will look for revenue and margin growth as volumes return to and exceed pre-pandemic levels, aided by the acquisition of Vifor.