CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Australian FY22 earnings preview - CSL

August 15, 2022 3:24 AM

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 ASX200 with an index weighting of ~6.9% and reports its Full Year numbers this Wednesday the 17th of August.

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 account for almost half of CSL's sales. In the first 1H 2022, CSL reported a 5% fall in Net Profit After Tax (NPAT) to $1.76bn.

In December 2021, CSL announced it would acquire 100% of Vifor Pharma Ltd, a global speciality pharmaceutical company with leadership in renal disease and iron deficiency. After a delay to do with antitrust issues, the US$11.7bn deal received regulatory clearance and was recently completed.

While the deal will have no bearing on the company’s earnings for 2022 it will provide the company with a bigger footprint within the industry, a more diversified earnings stream and boost CSL’s earnings in 2023.

Along with strong demand for plasma products and a drop in the fees paid to plasma donors (boosted payment incentives no longer needed to attract donors as they were during COVID-19), the company ends this financial year in a strong position.

CSL’s earnings are heavily screwed to the first half of the year. Full Year NPAT is expected to be in the range of $2.15bn-$2.25bn.

CSL Daily Chart

The decline from the $342.75 high of February 2020 to the $240.10 low in February 2022 completed a correction and the CSL share price is eyeing trend channel resistance near $310/12 where profit taking/selling is likely to emerge.

Should the CSL share price break above the resistance at $310/12 and then above resistance at $320/21 it would likely open up a retest and break of the $342.75 high.

Source Tradingview. The figures stated are as of August 15, 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024