CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

CSL earnings preview: what to watch out for from its FY19 release

Here are some of the key things investors should be aware of ahead of CSL’s full-year earnings, set to be released August 14.

(ASX: CSL) earnings preview Source: Bloomberg

When is CSL’s results date?

The global biotechnology company will release its 2019 full-year results on Wednesday August 14.

CSL full-year results preview

CSL Ltd, the A$99.8 billion biotechnology company has been a strong performer year-to-date, seeing its share price rise 17% since January.

The company’s solid share price momentum has been underpinned by impressive business growth and improved FY19 guidance.

In the first-half of 2019, the biotech giant saw its revenue hit $4.5 billion, an 11% increase year-over-year.

These results were driven by good demand for a number of the company’s cornerstone products, including ‘Immunoglobulin, Specialty Products and Influenza.’

CSL’s stellar top-line growth had a positive knock-on effect on the company’s profitability. Here, CSL saw its earnings after tax and earnings per share (EPS) both grow by 10% in the 2019 first-half.

Investors will likely be keen to see this upward momentum continue when CSL announces their full-year results next week.

Off the back of these strong profits, CSL issued investors a interim dividend of $0.85 cents per share – a 8% increase on the interim dividend from the year prior.

CSL share price outlook in focus

The outlook appears good for the biotechnology giant, with CSL Ltd noting that demand remains robust for its core therapies. Speaking of the 2019 full-year outlook, CSL’s Chief Executive Officer, Paul Perreault, previously remarked that:

‘CSL’s net profit after tax for FY19 would be in the range of approximately $1,880 to $1,950 million at constant currency. We now anticipate the profit figure to be around the upper end of this range.’

With good half-year results, and now an upgraded earnings outlook, investors will likely be keen to see CSL meet these increased expectations when the company reports its FY19 results next week.

Accordingly, the share price has the potential to come under pressure from investors in the wake of its full-year results if these expectations are not met.

Risks and analysts' estimates

Though CSL has guided profits higher for FY19, the company’s Seqirus product – an important influenza vaccine, has lagged.

Here the company flagged that while Seqirus:

‘Is tracking to plan but due to the seasonability of this business we anticipate it to post a loss in the second half of the fiscal year.'

Finally, though CSL trades ahead of the market – in terms of its price to earnings ratio – the biotechnology giant retains an overweight analyst consensus, according to the Wall Street Journal.

Of the 13 analysts covering the stock, seven rate it as a buy while six rate it as a sell.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.