Shares of CSL (AU:CSL) fell another 4% this morning despite reporting stronger-than-expected results for the six months ending December 31, 2023. CSL CEO Dr. Paul McKenzie attributed the solid first-half results to the exceptional performance of the CSL Behring unit’s drug portfolio, particularly the momentum in immunoglobulins. The decline in CSL stock today could be related to the company’s warning about near-term weakness in the CSL Vifor business.
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ASX-listed CSL shares fell over 5% yesterday after the disappointing results of the Phase 3 trial of a key heart drug.
CSL is a multinational biopharma company researching and developing drugs and vaccines in blood plasma derivatives, antivenom, and cell culture reagents.
More on CSL’s Half-Year Results
For the first half of Fiscal 2024, CSL’s total revenues jumped 11% to $8.05 billion (at constant currency), exceeding the consensus of $7.94 billion. Moreover, NPATA (net profit after tax before amortization) rose 13% year-over-year to $2.06 billion (constant currency).
Importantly, CSL Behring’s revenues jumped 14% while CSL Seqirus’ revenues rose 2% compared to the prior-year period. CSL Vifor generated $1.01 billion in revenue, but this contribution was not comparable as the business was acquired in August 2022. CSL cautioned that it has dampened the expectations from CSL Vifor over the short term as the company navigates through an evolving iron market.
Thanks to the higher income earned in the first half, CSL’s board raised its dividend by 12% to AU$1.81 per share.
Furthermore, CSL reaffirmed its FY2024 guidance of NPATA in the range of $2.9 to $3 billion on a constant currency basis. This reflects a growth between 13% and 17% compared to FY2023.
Is CSL a Buy, Sell, or Hold?
With eight unanimous Buys, CSL stock commands a Strong Buy consensus rating on TipRanks. The CSL Limited share price target of AU$326.28 implies 15.9% upside potential from current levels.
