Own CSL shares? What to expect from its half-year results

Next week will be a big one for CSL Ltd (ASX: CSL) shares and shareholders.

That’s because the biotechnology company is scheduled to release its half year results on Tuesday.

Ahead of the release, let’s now take a look to see what the market is expecting from the company.

Half-year results preview

There are likely to be two key things to look out for when CSL releases its results next.

The first is its profit growth and whether it is on course to achieve its guidance in FY 2024. Morgans is expecting a solid first half performance. It said:

FY24 guidance suggests solid 1H. FY24 constant currency guidance calls for NPATA US$2.9-3bn (13-17%) on 9-11% revenue growth, with operating efficiency improving, B/S leverage declining (2x ND/EBITDA) and ROIC “steadily improving” over time.

Elsehwere, the team at Citi is forecasting 17.6% earnings per share growth in FY 2024. So, its analysts will no doubt be looking for similar growth during the first half.

What else?

Another metric to keep an eye on is the gross margin of the key CSL Behring business. This arguably has the biggest impact on the company’s profitability. So, if this margin shows signs of improvement, it could go down well with the market.

According to a note out of UBS, the consensus estimate for CSL Behring’s gross margin is 50.3%. This is slightly ahead of the broker’s estimate of 49.8%.

Should you buy CSL shares?

Citi, Morgans, and UBS are all bullish on CSL and currently have the equivalent of buy ratings on its shares.

The notes reveal that Citi has a buy rating and $325 price target, Morgans has an add rating and $328.20 price target, and UBS has a buy rating and price target of $350.

The post Own CSL shares? What to expect from its half-year results appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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