What happened to the CSL share price?
Blood plasma and vaccine producer, CSL Ltd [ASX:CSL], is down 8.9% today. After closing at $90 last night, the stock fell to a low of $81.48 this morning.
Why did this happen to CSL shares?
The share price fall comes after the company reported its half yearly results.
Net profit for the half year rose by 7.2%, which more or less matched analysts’ expectations. But shareholders weren’t impressed that the company cut its full year earnings outlook by 10%, due to increased global competition.
Despite the disappointing full year outlook, CEO Paul Perreault expressed confidence in the growing global demand for the company’s plasma therapies.
He also downplayed the weaker full year outlook saying, ‘It is a not material change … The few million that we are going to take off the profit line I still thought we would let people know about. We don’t want any surprises. I just want to be honest with people.’
What now for CSL Ltd?
The CSL share price has gained more than 40% in the past six months. But it has recently faced a number of challenges.
Back in January, The Centers for Disease Control and Prevention, in the US, flagged issues with the effectiveness of the season’s flu vaccines. The share price suffered its largest fall in eleven months.
The recent jump in the Swiss Franc isn’t good news for CSL either. The company operates major manufacturing plants in Switzerland.
However, CSL does remain a solid performer with good long term fundamentals.
for The Daily Reckoning Australia