Weakness in vaccine division driving CSL lower

Morgans Financial Limited

Morgans Financial Limited

CSL has been considerably weaker following its FY16 results announced 3 weeks ago (down c7%, after being down c5% on the day of its earnings release). So what gives? Well, recall FY16 underlying results were broadly in line with expectations, with solid growth across the core plasma businesses (c80% of total sales) and stable margins. However, there were two items the market focused on it clearly did not like (and still doesn't): Weakness in the newly branded Seqirus vaccine division (c15% of total sales), which reported a NPAT loss of US$206m on the back of a soft flu season and recent Novartis acquisition, stripping nearly 10% out of earnings; FY17 earnings outlook calling for NPATg c11%, below consensus expectations c19%. So it looks like share weakness is merely a case of the jilted lover(s)…use weakness to accumulate.


MORE ON



1 stock mentioned

Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.