CSL (ASX:CSL) share price slumps despite 10% revenue growth

CSL shares are on the move down in this afternoon's session.

| More on:
woman testing substance in laboratory dish, csl share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The CSL Limited (ASX: CSL) share price has dipped into the red during afternoon trade.

CSL shares are on the move despite the company's outperformance from its FY21 earnings.

Let's investigate further.

The market has responded to weak guidance

Despite the fact that CSL grew revenue 9.6% to $10 billion and outperformed on guidance on net profit after tax (NPAT), the company's shares are in the red.

To illustrate, CSL recognised NPAT of $2.3 billion, a 10% year on year increase that came in well above its guidance range of 3% to 8%.

Moreover, CSL committed to issue a full year dividend of $2.22 per share, signifying a 10% increase from the year prior.

In addition, the biotherapeutics company saw its gross profits creep up by 9% in FY21.

However, in its FY21 earnings report, CSL outlined it expects a decline in NPAT for FY22 of $2.1 to $2.25 billion.

This factor, which could weigh in on the CSL share price, calls down-step in FY22 after-tax profits in the range of 2.5% to 6.8%.

The decrease is on a backdrop of plasma collection headwinds, as per CSL. Although, in the report, CSL CEO Paul Perreault was "optimistic" on a "global recovery with social mobility and normalised conditions".

Investors have reacted unfavourably to CSL's FY22 earnings guidance, selling off the company's shares shortly after the open.

The CSL share price is sitting at $293, a 1.6% dip into the red from yesterday's closing price.

CSL share price snapshot

The CSL share price has had a choppy year to date, climbing just 3.5% into the green since January 1.

Further, CSL shares have dipped approximately 0.05% into the red over the past 12 months.

These returns have lagged the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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 Bruce Jackson.

More on Share Fallers

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Bannerman Energy, Life360, Strike Energy, and Xero shares are tumbling today

These shares are under pressure on Thursday. But why?

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Fallers

Why DroneShield, Neuren, Paradigm, and Pilbara Minerals shares are roaring higher today

These shares are having a strong session on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Betr, Develop Global, Northern Star, and Paragon Care shares are dropping today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why APA, DroneShield, EOS, and Woodside shares are tumbling today

These shares are missing out on the good times on Tuesday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Catalyst Metals, Coronado Global, and Pilbara Minerals shares are falling today

These shares are having a tough time on hump day. But why?

Read more »