CSL Limited (ASX:CSL) shares surge higher on profit guidance upgrade

In morning trade the CSL Limited (ASX: CSL) share price has been one of the best performers on the market.

At the time of writing the biotherapeutics company’s shares are up 5% to $184.69.

Why are CSL Limited’s shares pushing higher?

This morning CSL provided the market with a revised profit outlook for FY 2018. As you might have guessed from the share price reaction, it was an upgrade.

According to the release, the company now expects net profit after tax for FY 2018 to be in the range of approximately US$1,680 to US$1,710 million in constant currency.

Previous guidance, which was given at its half-year results in February, was for full-year net profit after tax in the range of US$1,550 to US$1,600 million in constant currency. This means that management has lifted its guidance by 6% to 8%.

It also means that FY 2018 net profit after tax is expected to be 25% to 28% higher than the US$1,337 million it achieved in FY 2017.

What caused the guidance upgrade?

CSL’s CEO and managing director, Paul Perreault, advised that the strong performance was “underpinned by a confluence of positive outcomes as we work to deliver on our strategy. Of particular note has been a positive product and geographic sales mix shift, particularly with better than expected sales of Idelvion and Haegarda.”

In addition to this, he pointed to a strong performance from its Seqirus influenza business following a severe northern hemisphere influenza season and the phasing of investments in clinical trials having a positive financial impact.

Should you invest?

I think this profit upgrade demonstrates why CSL is regarded as one of the highest quality businesses that Australia has to offer.

Although its shares do trade at a premium to the market average, I believe this is justified by its current growth profile.

In light of this, I would put it up there with Cochlear Limited (ASX: COH) and ResMed Inc (ASX: RMD) as one of the best buy and hold options in the healthcare sector.

As well as CSL, I think this investment opportunity could be a fantastic buy and hold option.

The Rocket Fuel of the AI Boom

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

Everyone is talking about the artificial intelligence revolution.

Harvard Business Review calls it, “the most important general-purpose technology of our era.”

One Google Insider predicts AI, “will be as transformative as the discovery of electricity.” And it already is transforming industry after industry.

After all we have been hearing about AI for years…but it never really lived up to the hype…so what’s finally unlocked this huge tidal wave of innovation?

Click here to learn more!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!