CSL shares reverse gains after missing first-half estimates
Make us a preferred source
Make us a preferred source on Google
More news: CSL shares tumbled in afternoon trade, having gained more than 1% earlier in the session, as traders digested the biopharmaceutical group's first-half result.
CSL shares were down 4.2% to $259.30 by 1:45pm AEDT.
The market's third biggest company by market capitalisation reaffirmed its full-year revenue growth and NPATA guidance, despite falling short of first-half revenue, NPATA and EBIT estimates this morning.
However, its Seqirus vaccine business was negatively impacted by significantly low influenza immunisation rates, particularly in the US.
CSL shares edge up despite 'weaker-than-expected' HY performance
The news: CSL shares lifted on the ASX despite the biotech group missing market estimates for the first half of the 2025 financial year.
CSL shares were up 0.5% to $271.75 by 11:45am AEDT, having risen more than 1% in early trading.
CSL's first-half result missed consensus estimates at the revenue, EBIT and NPATA lines. However, CSL has retained its full-year revenue growth and NPATA guidance.
RBC Capital Markets said the update was 'negative' but has a 'sector perform' rating on the company with a price target of $286.
What they said: "...we expect the weaker than expected 1H25 performance and guidance for an increase in R&D and G&A [general and administrative] expenses to raise questions of how the company can achieve its FY25 NPATA guidance," said RBC analyst Craig Wong-Pan.
"Consequently, we expect the stock to underperform the market today."
CSL lifts first-half profit, reaffirms FY guidance
The news: Biotech giant CSL has lifted its profit and revenue for the first half on the back of solid growth at its Behring and Vifor Pharma businesses, and reaffirmed its full-year guidance for revenue and profit.
The numbers: Net profit for the six months to December was up 6% to USD2.01 billion ($3.2 billion) while revenue rose 5% to $8.48 billion. The company will pay an unfranked interim dividend of USD1.30 a share, up from USD1.19 a share a year ago.
The context: The blood products giant said strong demand for its therapies translated into sales growth at the main Behring business, particularly for its core immunoglobulin division, and initiatives to improve gross margin were tracking according to plans.
Its Seqirus vaccine business was negatively impacted by significantly low influenza immunisation rates, particularly in the US. However, sales grew at CSL Vifor, underpinned by robust iron volumes in Europe and the expansion of nephrology products.
Chief executive Paul McKenzie said the company is in a strong position to deliver annualised double-digit earnings growth over the medium term and reiterated guidance for revenue growth of 5% to 7% for FY25, with underlying profit to be in the range of USD3.2 billion to USD3.3 billion at constant currency.
The sources: ASX announcement, RBC Capital Markets research
