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CSL Limited (ASX:CSL) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to AU$257 in the week after its latest half-year results. Revenues of US$8.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.13, missing estimates by 4.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for CSL
Taking into account the latest results, the most recent consensus for CSL from 16 analysts is for revenues of US$15.7b in 2025. If met, it would imply a modest 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.6% to US$6.10. Before this earnings report, the analysts had been forecasting revenues of US$15.7b and earnings per share (EPS) of US$6.37 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at AU$319, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values CSL at AU$361 per share, while the most bearish prices it at AU$250. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that CSL's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that CSL is also expected to grow slower than other industry participants.