CSL earnings preview: why CSL is optimistic about its annual earnings

CSL Limited release date:

CSL Ltd is expected to release its earnings report on Wednesday, August 17, 2022.

CSL Limited earnings expectation:

• NPAT: US $2.26 billion
• EPS: 6.938 (-4% YOY)
• DPS: 3.075 (-22% YOY)

CSL Limited earnings key watch:

After three years of an average annual earning of 6.14% compared to the industry average of 9.21%, analysts estimate CSL’s annual growth to increase to 7.49% between 2022 and 2023. The optimism is well earned as CSL sold a record volume of 110 million doses of seasonal influenza vaccines in the northern hemisphere.

With plasma collections now well above pre-covid levels and plasma donor fees reduced, this news bodes well for a healthy margin despite inflation headwinds. Furthermore, the power of the CSL brand has allowed the company to increase the price of its products by near double digits without hurting demand.

In terms of the biotech company’s outlook, CSL tips EPS growth of 17% for FY23 and a total shareholder return of 15% over the next 12 months with plasma collections expected to continuously improve and deliver strong revenue growth.

CSL share price and technical analysis:

Over the last six months, CSL has overcome market woes by surpassing set benchmarks. Its share price had jumped over 20% while the ASX 200 was down 2%.

From a technical viewpoint, the share price for CSL was slightly lower after prices failed to clear the $300 psychological level in July. However, the price is still hovering around the year high level. The recently breached 20-day Simple Moving Average (SMA) may put some pressure on the prices while the. MACD and RSI have fallen back to the avaerage but remain above the 50 midpoints.

A break above the trend line would call for a new attempt of the $300 threshold while a move below $289 would erase all the gain from early July.

CSL Limited daily chart