CSL Ltd (ASX: CSL) shares are edging higher on Tuesday morning.
At the time of writing, the biotechnology company's shares are up 0.5% to $271.68.
This follows the release of its half year results before the market open.
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CSL shares edge higher on results day
Investors have been buying the company's shares this morning despite its results falling short of expectations for the six months ended 31 December.
CSL delivered a 5% increase in constant currency revenue to US$8.48 billion, a 7% increase in net profit after tax in constant currency to US$2.04 billion, and a 5% lift in NPATA in constant currency to US$2.11 billion.
The latter was a 4.1% short of the consensus estimate for the period.
Nevertheless, management has reaffirmed its full year guidance for FY 2025 and is forecasting revenue growth of 5% to 7% in constant currency.
And with further margin expansion expected in the second half, it has reiterated its guidance for NPATA of approximately US$3.2 billion to US$3.3 billion in constant currency. This represents growth of approximately 10% to 13% year on year.
And pleasingly, the company believes this double-digit earnings growth can continue over the medium term. It said:
The fundamentals of CSL's underlying business units are robust and CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term. CSL's therapies continue to be valued by patients and healthcare systems around the world, as demonstrated by the continued growth of our core Ig franchise and the solid uptake of new product launches by CSL Vifor.
Broker reaction
Goldman Sachs has been running the rule over the result. While its analysts were disappointed with CSL's headline result, they were pleased with a stronger than expected performance from the key CSL Behring. They explain:
Mixed result with headline misses to group Revenue/ Gross Profit and NPATA (-0.7%/-2.2%/-4.1% vs cons) primarily driven by weakness in Seqirus, higher group SG&A costs and FX. Importantly, CSL's Behring Gross Profit segment was +1% ahead of consensus driven by a strong recovery in GM% (170 bps CC vs 1H24).
Given weakness in specialty sales, we believe the GM% accretion was primarily driven by solid progress on cost per litre reductions including optimizing donor fees, collection center efficiencies and fixed costs leverage on the fractionation side. Kcentra volume reduction was previously flagged by CSL with specialty sales in 1H25 weaker vs consensus by -10.4%.
It then concludes:
The weakness in Seqirus appears primarily driven by industry pressures with Sanofi and GSK reporting double digit revenue declines over the comparable period. However, compared to past periods, it appears market share gains have not been a key driver for CSL Seqirus this half. CSL Vifor was ahead of consensus expectations (+4.5% Gross Profit) with growth in iron sales and strong new product launches (TAVNEOS and FILSPARI). FY25 Constant Currency guidance was reiterated with FX headwind increased to $90m (vs $50m). Maintain Buy.
Goldman currently has a buy rating and $325.40 price target on CSL's shares.
