CSL share price lifts on half-year earnings beat

CSL has delivered a messy half-year result but appears to have beaten the market's expectations…

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Key points
  • CSL shares are rising after the release of its half-year results
  • The biotherapeutics giant delivered an 'untidy' result according to Goldman Sachs
  • However, it appears to have been ahead of expectations

The CSL Limited (ASX: CSL) share price is edging higher on Tuesday morning.

At the time of writing, the biotherapeutics giant's shares are up 0.5% to $306.36.

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

Image source: Getty Images

Why is the CSL share price rising?

The CSL share price is rising today after the market responded relatively positively to the release of the company's half-year results.

For the six months ended 31 December, CSL reported a 19% increase in revenue to US$7,183.5 million and a 10% lift in net profit after tax before amortisation (NPATA) in constant currency to US$1,957 million.

This was driven partly by a five-month contribution from Vifor Pharma, strong growth in immunoglobulin and albumin sales, and record levels of plasma collections.

This allowed the CSL board to lift its interim dividend by 2.9% to US$1.07 per share.

Looking ahead, management has reaffirmed its guidance for FY 2023 NPATA in the range of approximately US$2.7 billion to US$2.8 billion at constant currency.

How does this compare to expectations?

Analysts at Goldman Sachs have had a quick look at the result and given their verdict.

While the broker described the result as "untidy", it acknowledges that it appears "in-line to slightly ahead".

This appears to explain why the CSL share price is rising this morning. It commented:

Juggling various profit lines, we expect the market to focus on a combination of: 1) statutory NPAT (-8% YoY, but flat at constant currency), both seemingly in-line with consensus; and 2) NPATA (+2% YoY, but +10% at constant currency), which appears +3% ahead. CSL may be running slightly ahead of FY guidance on the NPATA adjustments but this is not clear, and we will await further colour on the call. In any case, FY23 guidance for NPATA of $2.7-2.8bn has been reiterated, which we also presume to mean that the prior NPAT guidance remains in effect.

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 no position in any of the stocks mentioned. 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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