Market too optimistic on CSL result
Stock
CSL Limited (ASX: CSL) $186.34 as at 13/02/2019
Event
It’s been a volatile start to the day for blood plasma business CSL this morning after reporting their first half numbers to the market.
The CSL share price originally traded higher before quickly selling off, falling over 5% from high to low as the market digested the numbers.
On first glance it looks like a decent start to the year, but the market seems to have been positioned for another upgrade – a consistent theme of CSL earnings over the past few years. Instead of an upgrade, the result is pretty much in line with already heightened expectations. Guidance for the full year net profit was revised to the higher end of the previous $US 1.88b to $US 1.95b range, and with consensus already at $US 1.94b it feels like a miss when it really should be an upgrade.
While early days, the technical picture on the daily chart below is a bearish one.
CSL (ASX: CSL) Chart
Market Matters Take/Outlook
