As the most astute ASX investors would know, August is an important month for ASX shares. It's earnings season, which means that we get a look under the hood of most of our favourite ASX stocks. And one of the first cabs off the rank will be CSL Ltd (ASX: CSL) shares.
Yep, ASX 200 healthcare stock CSL is scheduled to report its full-year earnings next Tuesday, 13 August. For dividend income lovers, that's also when the healthcare giant will reveal its next dividend payment.
Earnings reports are always important events on investors' calendars. But CSL investors will no doubt be watching this particular set like a hawk. That's because the company has staged a remarkable share price comeback over the past ten months or so. Back in October 2023, CSL shares were languishing at a new five-year low of under $230 a share.
But the company has bounced back with a vengeance ever since. CSL is now up 32% from those lows and has pulled off a 10% bounce since the start of May this year. At today's pricing of $304.41 a share, CSL stock is now sitting on a 12-month gain of 16.12%.
Check all of that out for yourself below:
But what might CSL shares do when these latest earnings are released?
Image source: Getty Images
Where to next for CSL shares?
Well, that's an impossible question to answer. As we've noted here at the Fool several times, earnings season actually functions more like 'expectations season'. If CSL delivers numbers that are better than what the market expects, its shares will probably rise as a result. The opposite is also true.
So we won't really know what will happen to CSL until the company shows its hand on 13 August. Anyone who tells you differently probably isn't being honest.
However, we can go through what some experts are pencilling in for this company.
Just yesterday, my Fool colleague Tristan reviewed ASX broker Bell Potter's latest views on CSL shares. Bell Potter gave CSL shares a 'buy' rating and a 12-month share price target of $327.42.
That obviously indicates that this broker is expecting a positive report next week.
At today's pricing, Bell Potter argues that the company represents "an attractive buying opportunity" thanks to an anticipated "margin recovery phase for CSL, driving above-market earnings growth over the next few years".
As my Fool colleague also covered this week, Bell Potter isn't the only broker eyeing a potentially successful earnings report. Fellow broker UBS has also indicated that it expects CSL to deliver a rosy earnings report next week and strong growth in the years ahead.
Specifically, it has forecast a 14% rise in net profits to US$2.99 billion for the company's 2024 financial year. UBS is also expecting the company to hit US$3.49 billion in profits for FY2025 and US$4.1 billion for FY2026.
If that indeed comes to pass, it would no doubt bode very well for CSL shares.
But of course, we'll have to wait and see what CSL pulls out of its hat next week to be sure. See you next Tuesday!
