Here’s why the CSL Limited (ASX:CSL) share price rocketed 16% higher in August

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CSL

The CSL Limited (ASX: CSL) share price rocketed 15.6% higher in August, aided by a full-year profit result that beat its upgraded guidance from May.

Full-year profit for the 12 months ending 30th June 2018 of $1729 million was delivered, up 29% on the same period a year earlier.

The vaccines and blood products supplier said sales revenue for the year to June 30 rose 14.7% to $US7.59 billion.

On a per-share basis, the company said it had a profit of 382 cents. This compares with a profit of 294 cents per share in the corresponding period last year. The company declared a full year dividend for the period of 172 cents per share, an increase of 26%.

CSL shares have had a wonderful run in 2018, rising from $140.55 to as high as $232.69 in late August.

CSL

In providing guidance, CSL said it expects 2018/19 net profit in constant currency terms to be in the range of $US1.88 billion to $US1.95 billion, an increase of 10-14% from 2017/18.

Since early September, CSL shares have drifted lower in a falling share market, the ASX 200 constituent now trading at $210.62.

CSL trades on a price to earnings (P/E) ratio of around 40 times earnings. CSL shares trade on a fully franked dividend yield of 1.2%.

CSL Limited shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

CSL Limited was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than CSL Limited. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au