FINWIRES · TerminalLIVE
FINWIRES

CSL Expects Flat Revenue for Fiscal 2027 With Return to Profit Growth

By
CSL Expects Flat Revenue for Fiscal 2027 With Return to Profit Growth

CSL (ASX:CSL) expects fiscal 2027 revenue to be flat while making a return to profit growth after fiscal 2026 results beat estimates amid restructuring.

The biotechnology company reported $6.43 in underlying NPATA earnings per share for fiscal 2026, compared with $6.65 a year ago and beating analysts' estimates surveyed by FactSet of $6.27.

Revenue for the year was $15.8 billion, beating the estimate of $15.38 billion from analysts polled by FactSet, while paying restructuring costs of $799 million.

The biotechnology firm attributed the results to "strong fundamentals" of the plasma industry and said momentum is building behind its newer therapy products.

Looking ahead, CSL expects fiscal 2027 revenue to be flat with 5% growth in its underlying net profit after tax.

"CSL is positioned for a return to sustainable growth, supported by solid plasma market fundamentals, a simplified business and targeted investment in our commercial capabilities and development programs," said Interim Chief Executive Officer Gordon Naylor.

Jefferies, commenting on the company's Behring business, said productivity gains were insufficient to offset lower revenue against the division's high fixed-cost base as the segment's gross margin declined 70 basis points to 49.6%.

Related Articles

Alibaba Launches AI Music Generation Model to Rival Suno, Udio
US Markets

Alibaba Launches AI Music Generation Model to Rival Suno, Udio

Alibaba Group (HKG:9988) has launched a beta version of its new AI music-generation model called HappyShrimp 1.0, according to a press release on Monday.The model, developed by Alibaba's Token Hub business group, converts texts to "a fully produced song" containing melody, arrangement, lyrics, and vocals, the Chinese tech company said."HappyShrimp 1.0 allows users to generate complete tracks from a single prompt, whether based on an emotion, a story concept, or a target genre," Alibaba said, noting that the model can produce tracks across genres like Chinese style, pop, R&B/soul, hip hop, rock, funk, electronic, classical, and jazz.The company did not disclose how it plans to monetize the music model. HappyShrimp 1.0 would likely rival AI music startups like Suno and Udio, as well as Google's MusicFX and Meta's AudioCraft.The launch expands Alibaba's generative AI offerings into the audio sector, further boosting its Cloud business. In the fiscal year ended March 31, Alibaba Cloud's external revenue growth accelerated to 40%, with AI-related products making up 30% of the total.Earlier this month, Alibaba Cloud launched Qwen3.8-Max, which it described as its "largest and most capable flagship model to date." The model features 2.4 trillion parameters and supports a context window of up to 1 million tokens."Alibaba's full-stack AI investments have progressed from incubation to commercialization at scale," Alibaba CEO Eddie Wu said in May.At the time, the company said it expects AI model and application services annualized recurring revenue to top 10 billion yuan in the June quarter and 30 billion yuan by the end of the year.Alibaba expects AI-related product revenue to surpass 50% of Cloud Intelligence Group's total external revenue to become the unit's primary growth driver.In March, Wu said Alibaba aims to surpass $100 billion in combined cloud and AI external revenue over the next five years.

HKG:9988
Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires
US Markets

Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires

(Updates with market moves at the end of the day, and other changes, if any.)Stocks on Wall Street fell Monday and oil prices advanced as a ceasefire between the US and Iran expired, with both sides showing no interest in an extension.The S&P 500 and the Dow Jones Industrial Average shed 0.5% each to close at 7,745.06 and 53,459.78, respectively. The Nasdaq Composite lost 0.3% to 26,644.91. Except energy, all sectors were in the red, led by communication services and consumer staples.West Texas Intermediate crude oil was up 2.4% at $84.41 a barrel in Monday late-afternoon trade, while Brent rose 2.4% to $90.64.In June, the US and Iran agreed to a memorandum of understanding to end their war and negotiate a final deal. However, the truce apparently collapsed as tensions over the control of the Strait of Hormuz escalated.Iranian Foreign Ministry spokesman Esmail Baghaei ruled out extending the memorandum of understanding, according to a CNBC report that cited state news agency Tasnim.President Donald Trump warned that the US could attack Oman if the Gulf nation interferes with the blockade of Iranian ships in the Strait of Hormuz, The Wall Street Journal reported, citing an interview with Fox News.On Saturday, Israeli strikes in southern Lebanon left at least 11 people dead, Reuters reported, citing the Lebanese health ministry. Traffic through the strategic waterway slowed as three vessels operated by Abu Dhabi National Oil Co. were attacked in transit last week."Prices remained supported by renewed fighting in Lebanon and attacks on vessels in the Strait of Hormuz, raising concerns over regional supply disruptions and complicating prospects for a US-Iran deal," ING Bank said in a report Monday.US Treasury yields were higher, with the 10-year rate up 3.2 basis points at 4.73% and the two-year rate rising 1.3 basis points to 4.18%.In company news, JetBlue Airways (JBLU) shares slumped 7.3%, as Seaport Research Partners downgraded its rating on the air carrier's stock. JetBlue's balance sheet woes could worsen as the Strait of Hormuz appears unlikely to reopen anytime soon, potentially prolonging jet fuel volatility, Seaport said in a note.Shares of American Airlines Group (AAL), Southwest Airlines (LUV), United Airlines (UAL) and Delta Air Lines (DAL) were also in the red.Retail giant Walmart (WMT) is scheduled to release its latest financial results later this week, along with Home Depot (HD), TJX (TJX), Lowe's (LOW), Target (TGT), Ross Stores (ROST) and BJ's Wholesale Club (BJ).S&P 500 companies' annual growth in second-quarter earnings and revenue largely held steady week over week, Oppenheimer Asset Management said Monday.The Federal Reserve is scheduled to post minutes of its July policy meeting Wednesday, which will be assessed for fresh insight on the central bank's monetary policy. At the meeting, policymakers left interest rates unchanged in a divided decision, with three regional presidents calling for policy tightening.In economic news, homebuilder confidence in the US unexpectedly ticked higher this month, though builders continued to deal with rising construction costs amid a renewed surge in gas and diesel prices, the National Association of Home Builders and Wells Fargo said.Gold was up 0.9% at $4,475.40 per troy ounce, while silver advanced 1.7% to $66.20 per ounce.

Dow JonesNasdaq CompositeS&P 500$AAL$BJ$DAL$HD$JBLU$LOW$LUV$ROST$TGT$TJX$UAL$WMT
Housing, Childcare Consume Over Half of Typical US Family's Annual Income, Redfin Says
US Markets

Housing, Childcare Consume Over Half of Typical US Family's Annual Income, Redfin Says

A typical working family spends more than half of its annual income on housing and childcare, though that share rises to 97% in Los Angeles, Redfin said Monday.Redfin compared the annual cost of buying a home and arranging childcare for one child with the median household income for the 100 largest metros in the US. Redfin used Winnie for childcare data.Housing and childcare costs consume 52% of median earnings nationwide, the report showed. Working families in Little Rock, Arkansas, have the lowest share at nearly 40%, while households spend nearly all, or 97%, of their annual income on housing and childcare in Los Angeles, California.Seven of the 10 least affordable metros are in California amid high home prices, while New York is ranked second on that list, Redfin said. Midwest and Southern metros are the most budget friendly due to affordable home prices and daycare."High-income metros like San Francisco and San Jose offer bigger paychecks, but those gains are often offset by extraordinarily expensive homes," Redfin Senior Economist Yingqi Xu said. "Meanwhile, markets with more affordable housing give working parents far more financial flexibility, even when local incomes are lower."The median US home price has doubled and childcare expenses have soared by 40% in the last decade, Redfin said."Families considering a move should weigh both of those big costs -- as well as job opportunities -- when deciding where to put down roots," Sara Mauskopf, chief executive of child care marketplace Winnie, said. "Families should also make sure childcare is actually available near where they want to live. If care is scarce or unaffordable, an otherwise affordable area may not be a practical place for a family with young children."Last week, National Association of Realtors data showed that existing home sales in the US fell more than expected last month as rising prices and mortgage rates continued to weigh on homebuying activity.