Why Trade CSL (CSL) Shares?
In February 2025, CSL published its H1 FY25 report (which ended on 31 December 2024). CSL delivered a solid H1 FY25 performance, with revenue increasing by 5% to reach US$8,483 million. The CSL Behring division led with 10% revenue growth in the first half of the fiscal year, followed by CSL Vifor, which managed to increase its individual revenue by 6%. On the contrary, CSL’s Seqirus vaccine unit saw its revenue decline by 9% for the same period, missing analysts’ expectations. CSL’s executives stated that the vaccine unit’s performance was negatively influenced by a recorded decline in Covid-19 immunisation rates in the US. However, hospitalisation rates had increased, posing a public health risk.
CSL’s total net profit surged by 6% to US$2.01 billion but still missed economists’ forecasts of US$2.09 billion. Despite market analysts raising questions about how the company could achieve its FY25 Net Profit After Tax And Amortisation (NPATA) guidance, CSL’s report suggested that full-year profit could rise between 10% and 13% on the back of CSL Behring and CSL Vifor’s efficient performances.
What Influences the Price Of CSL?
Financial Performance and Earnings ReportsThe financial performance of a company can influence its share price. Companies publish their earnings reports every quarter, allowing investors and traders access to official financial updates and forward guidance. The four quarterly reports are accompanied by an annual report released at the end of each fiscal year.
An earnings report may include revenue growth, net profit, and earnings per share (EPS) figures, among other key data. The company’s share price generally increases (decreases) if earnings figures surpass (fail to meet) analysts’ expectations.
Product Pipeline and R&D ProgressPharmaceutical companies’ growth depends on their product pipeline as well as progress on Research and Development (R&D). In September 2024, the Japanese Ministry of Health, Labour & Welfare approved CSL’s KOSTAIVE®, the first sa-MRNA Covid-19 vaccine for adults over 18 in the world. The company also launched FLUAD®, an influenza product in South Korea and Taiwan.
CSL management has vowed to keep investing in R&D and its product portfolio to enhance patient care and public health. According to a CSL report, the company invested US$1.4 billion in R&D for its three divisions and plans to continue doing so in order to strengthen its leading position in the biotechnology industry.
Competition and Market ShareCSL is one of the world's market-leading biotech companies, offering an array of drugs that help patients with haemophilia and iron deficiencies, as well as influenza-preventing vaccines. However, maintaining its position in such a competitive business environment remains challenging, especially when CSL’s main rivals are companies such as Pfizer, Roche, etc. While CSL intends to continue upgrading its R&D division, offering new solutions to patients worldwide, a major breakthrough by any of its competitors could act as a headwind to the Australian company’s plans.
External Factors: Pandemics and Geopolitical EventsThe onslaught of the Covid-19 pandemic in 2020 impacted how most industries function globally. Lockdowns forced pharmaceuticals to work on creating vaccines for a virus that put most aspects of global economic activity on pause. As CSL is one of the largest vaccine-producing companies in the world, any unexpected event, such as the Covid-19 pandemic, could play a role in shaping its share price.
Another factor that could impact the company’s plan and performance is the change of guard in the White House. The new US administration plans to reevaluate the healthcare budget expenses, trying to limit the federal budget deficit. Although it would be still early to assess the situation, the appointment of certain people with anti-vaccine views to high-ranking positions within the US Department of Health and Human Services may influence CSL’s performance in the long-run.
How Can I Trade CSL (CSL) Share CFDs?
Contracts for Differences (CFDs) are trading instruments that let traders speculate on the price direction of an asset – like CSL shares in this case – without owning the asset itself. Traders can choose to go long if they forecast a rise in price, or short if they anticipate a drop. One key feature of CFDs is leverage, which allows traders to open larger positions than their initial deposit using margin.