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Earnings Forecast for CSL Shares Through 2027

Published 05/08/2024, 11:43 pm
© Reuters.  Earnings Forecast for CSL Shares Through 2027
CSL
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CSL Ltd (ASX: CSL) stands as one of Australia's leading healthcare companies and a major player in the global biotechnology sector. Over the past decade, CSL, an ASX healthcare stock, has seen its shares appreciate significantly, rising by approximately 330%, along with paying dividends to shareholders. This impressive performance underscores the company’s potential for future growth, particularly if profit increases continue.

As the August reporting season approaches, CSL is set to disclose its financial results for the 2024 financial year on August 13. Analysts project that CSL will report revenue of US$14.7 billion, earnings before interest and tax (EBIT) of US$4.31 billion, and net profit after tax (NPAT) of US$2.99 billion. This would translate into earnings per share (EPS) of US$6.18 and an annual dividend per share of US$2.60. Each of these figures represents a projected increase of around 10% from the previous year, with net profit expected to grow by 14%. Such growth could positively influence the CSL share price.

Looking ahead to the 2025 financial year, CSL is anticipated to continue its growth trajectory as it recovers from the challenges posed by COVID-19. Revenue is expected to reach US$15.7 billion, with NPAT projected at US$3.49 billion, marking a forecasted increase of 16.7% from the previous year. Recent developments, such as a reduction in collection costs in the plasma sector and improving sales growth prospects for CSL's vaccines, provide confidence in the company's ongoing recovery and future performance.

For the 2026 financial year, projections suggest that CSL's revenue could rise to US$17 billion, with NPAT reaching US$4.1 billion. This would represent a year-over-year profit growth of 18.4%. Continued financial growth would reinforce CSL’s position as a key player in the biotechnology field and could positively impact its share price.

The 2027 financial year is projected to be particularly robust for CSL. Revenue is anticipated to hit US$18.7 billion, with EBIT expected to reach US$6.5 billion and NPAT estimated at US$4.88 billion. This would correspond to a year-over-year profit growth of 18.1%. With an EPS of US$10.08 and a potential annual dividend per share of US$3.46, CSL's share price could become increasingly attractive, trading at 20 times the projected FY27 earnings. Continued double-digit profit growth beyond this period could further enhance CSL's valuation.

CSL’s strong projected profit growth and strategic positioning suggest potential for continued success, which may benefit its share price and appeal to investors.

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