CSL (ASX:CSL) share price slumps despite 10% revenue growth

CSL shares are on the move down in this afternoon's session.

The CSL Limited (ASX: CSL) share price has dipped into the red during afternoon trade.

CSL shares are on the move despite the company's outperformance from its FY21 earnings.

Let's investigate further.

woman testing substance in laboratory dish, csl share price

Image source: Getty Images

The market has responded to weak guidance

Despite the fact that CSL grew revenue 9.6% to $10 billion and outperformed on guidance on net profit after tax (NPAT), the company's shares are in the red.

To illustrate, CSL recognised NPAT of $2.3 billion, a 10% year on year increase that came in well above its guidance range of 3% to 8%.

Moreover, CSL committed to issue a full year dividend of $2.22 per share, signifying a 10% increase from the year prior.

In addition, the biotherapeutics company saw its gross profits creep up by 9% in FY21.

However, in its FY21 earnings report, CSL outlined it expects a decline in NPAT for FY22 of $2.1 to $2.25 billion.

This factor, which could weigh in on the CSL share price, calls down-step in FY22 after-tax profits in the range of 2.5% to 6.8%.

The decrease is on a backdrop of plasma collection headwinds, as per CSL. Although, in the report, CSL CEO Paul Perreault was "optimistic" on a "global recovery with social mobility and normalised conditions".

Investors have reacted unfavourably to CSL's FY22 earnings guidance, selling off the company's shares shortly after the open.

The CSL share price is sitting at $293, a 1.6% dip into the red from yesterday's closing price.

CSL share price snapshot

The CSL share price has had a choppy year to date, climbing just 3.5% into the green since January 1.

Further, CSL shares have dipped approximately 0.05% into the red over the past 12 months.

These returns have lagged the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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