Australian earnings preview – CSL


Full Year:

CSL Limited (CSL) is Australia’s largest drug maker, one of the world’s largest biotech companies and a leader in flu treatments and plasma protein therapies. It reports its full-year numbers on the 19th of August.

CSL’s plasma collection operations have continued to operate as normal through the pandemic, and the company is working on one of the more than 100 Covid-19 vaccines currently in development. It is also working on a blood plasma treatment for patients who experience serious complications from COVID-19.

CSL stands to benefit by expanding its flu vaccine business and also from strong demand for its immunoglobulin products, which are based on antibodies produced by blood plasma due to supply shortages at competitors Grifols and Takeda.

CSL reaffirmed its already upgraded FY20 profit guidance in April and expects $2.11 billion to $2.17 billion in net profit with an estimated EPS of 600 cents per share.

Technically, the decline from the $342.75 high of February appear to be a correction after a stunning multi-year rally. Once the correction is complete, the uptrend would be expected to resume.

As such, we would consider buying a dip into the support offered by the trend channel and the March low, $250/240 area. Keeping in mind, a more aggressive entry may be required if the share price makes a sustained break above trend channel resistance $285/290 area, confirmation the uptrend has resumed.

Australian earnings preview – CSL

Source Tradingview. The figures stated areas of the 12th of August 2020. 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

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.