Celestica Q4 Earnings Expected to Show Strong Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Expectations: Celestica is projected to report Q4 EPS of $1.76, reflecting a 58.6% year-over-year increase, with revenue estimates at $3.49 billion, up 36.9%, indicating strong performance amid sustained data center demand.
- Product Innovation: During the quarter, Celestica launched the SD6300 ultra-dense storage system and a new family of 1.6TbE data center switches tailored for AI and ML workloads, further solidifying its position in the high-bandwidth networking market.
- Market Rating: According to Seeking Alpha's Quantrating system, Celestica holds a Strong Buy rating with a score of 4.89, showcasing robust performance in momentum, growth, and revisions, despite some pressure in profitability and valuation metrics.
- Analyst Outlook: An analyst upgraded Celestica ahead of earnings, highlighting strong AI networking demand and hyperscaler capex strength, and expects management to confidently address rumors regarding its top client, suggesting the company is well-positioned for another year of strong capex deployments.
Analyst Views on CLS
Wall Street analysts forecast CLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLS is 376.73 USD with a low forecast of 305.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 308.250
Low
305.00
Averages
376.73
High
440.00
Current: 308.250
Low
305.00
Averages
376.73
High
440.00
About CLS
Celestica Inc. is engaged in designing, manufacturing and providing hardware platform and supply chain solutions. It delivers supply chain solutions globally to customers in two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its ATS end market and comprises its Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Its Capital Equipment business comprises its semiconductor, display, and robotics equipment businesses. The CCS segment consists of its communications and enterprise end markets. The enterprise end market consists of Celestica’s servers and storage businesses. It offers a range of product manufacturing and related supply chain services to customers in both of its segments, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, systems integration, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
