CSL share price lower despite FY23 guidance update

CSL's shares are falling on Wednesday despite a positive AGM update…

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The CSL Limited (ASX: CSL) share price is trading lower on Wednesday.

In afternoon trade, the biotherapeutics giant's shares are down almost 1% to $280.65.

A health professional wearing a stethoscope and scrubs shrugs with uncertainty.

Image source: Getty Images

Why is the CSL share price falling today?

The weakness in the CSL share price today appears to have been driven by broad selling in the healthcare sector.

In fact, only one constituent of the S&P/ASX 200 Health Care index is in positive territory today, which has led to the index falling 0.8%.

Unfortunately, this has offset some relatively positive news coming out of the company's annual general meeting today.

What's happening at the AGM?

At the event, CSL's CEO and managing director, Paul Perreault, provided investors with an update on the company's performance so far in FY 2023.

The good news is that CSL is performing in line with its guidance for the financial year. Perreault said:

In terms of guidance for Financial Year 23, I am pleased to reaffirm that: Revenue growth to be in the range of 7 to 11% over Financial Year 22 at constant currency, with net profit after tax expected to be approximately in the range of US$2.4 to US$2.5 billion at constant currency. On a like for like basis, this represents a growth of between 10 – 14%.

It is worth noting that this guidance excludes CSL Vifor earnings and costs associated with the acquisition, as well as non-recurring COVID vaccine contribution. CSL intends to provide a further update on its guidance, including CSL Vifor, later this month.

Looking further ahead, Perreault is confident on the company's outlook. He concluded:

To close, I am absolutely certain that the fundamentals of our business are strong and the diversity of our pipeline is rich. This really sets up CSL to build on our track record of sustainable growth for years to come.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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