Why are CSL shares storming higher today?

CSL's FY 2023 results have gone down well with the market.

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CSL Limited (ASX: CSL) shares are having a strong start to the session.

In morning trade, the biotherapeutics giant's shares are up a sizeable 3% to $271.50.

Why are CSL shares racing higher?

Investors have been bidding CSL shares higher this morning after the company released its FY 2023 results which revealed earnings ahead of guidance.

For the 12 months ended 30 June, CSL's revenue increased 31% in constant currency to US$13.31 billion. This was driven by growth across the business, as well as an 11-month contribution from the new CSL Vifor business.

On the bottom line, CSL reported net profit after tax before amortisation (NPATA) growth of 20% in constant currency to US$2.86 billion. This was ahead of the company's guidance range of US$2.7 billion to US$2.8 billion.

FY 2024 guidance reaffirmed

Also potentially giving CSL's shares a boost today was confirmation that the company has reaffirmed its FY 2024 guidance.

CSL's CEO, Dr Paul McKenzie, said:

For FY24, revenue growth is anticipated to be approximately 9-11% over FY23 at constant currency. CSL's underlying profit, NPATA for FY24 is anticipated to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13-17%."

The all-important CSL Behring business is expected to be a key driver of this growth. Dr McKenzie highlights that "strong growth in our immunoglobulins franchise is expected to continue following record plasma collections in FY23."

Are CSL shares a buy?

As things stand, the team at Citi has a buy rating and a $340 price target on the company's shares. However, it is worth remembering that the broker hasn't run the ruler over these results yet, so that rating could change in the coming days. Stay tuned for an update on what brokers say about CSL shares later this week.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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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