ASX 200: CSL 1H 2023 earnings preview
Australia's third largest ASX 200 company, CSL, is scheduled to report its 1H2023 earnings on Tuesday, February 14th, 2023 AEDT.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
