All eyes will be on CSL Limited (ASX: CSL) shares next week when the biotherapeutics giant releases its FY 2023 results.
Ahead of the release on Tuesday 15 August, letâs take a look to see what the market is expecting the company to report.
CSL FY 2023 results preview
Given that CSL released a market update in June, we already have a fair understanding of what it will report next week.
According to the update, management is expecting to hit the higher end of its net profit after tax before amortisation (NPATA) guidance of US$2.7 billion to US$2.8 billion in constant currency.
This excludes an expected foreign exchange headwind of ~US$230 million to US$250 million.
And while no top-line guidance has been provided, Goldman Sachs expects the company to post revenue of US$2,584 million for FY 2023.
FY 2024 guidance
The main focus is likely to be on CSLâs guidance for FY 2024 rather than its actual result.
With its market update, management revealed that it expects its NPATA to grow ~13% to 18% in FY 2024 to ~US$2.9 billion to US$3 billion in constant currency.
This guidance was short of the marketâs expectations due to a softer margin recovery, which has put pressure on CSL shares since the update. Commenting on its margins, Goldman Sachs said:
The potential for a slower gross margin recovery than originally expected (as recently as a year ago) has been the primary investor debate since the FY22 result. However, todayâs update serves to underline just how challenging/persistent some of these pressures are proving and, in all likelihood, the magnitude was still broadly under-appreciated by most (including us).
Investors will no doubt be looking for management to provide some upbeat commentary on its margin outlook.
Are CSL shares a buy?
Goldman currently has a neutral rating on CSL shares. However, with a price target of $295, this implies a potential upside of over 12% for investors from current levels.
