CLS Earnings Prediction
The chart below shows how CLS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CLS sees a +0.24% change in stock price 10 days leading up to the earnings, and a +11.44% change 10 days following the report. On the earnings day itself, the stock moves by +0.66%. This data can give you a slight idea of what to expect for the next quarter's release.
CLS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.50B
22.33%
4.50%
Gross Margin
10.03%
4.15%
0.70%
Operating Margin
5.81%
-3.49%
6.80%
Net Margin
3.67%
-6.62%
-11.78%
EPS
0.77
14.93%
-7.23%
No Data Available
CLS Earnings Analysis
Celestica, Inc. Corporation (CLS.N) Earnings Conference Call
Positive
Q3 Revenue Surge: Celestica achieved Q3 2024 revenues of $2.5 billion, a 22% increase year-over-year, exceeding guidance expectations.
Record Adjusted EPS Growth: Adjusted EPS for Q3 2024 was $1.04, marking a $0.39 increase and the highest quarterly result in company history.
CCS Revenue Surge: The Connectivity and Cloud Solutions (CCS) segment saw a 42% revenue increase year-over-year, driven by strong demand from hyperscaler customers.
Adjusted ROIC Improvement: Adjusted ROIC improved to 28.6%, up 7.1% year-over-year, reflecting higher operating profitability and effective working capital management.
Share Repurchase Commitment: Celestica repurchased approximately 2.2 million shares for $100 million during Q3 2024, demonstrating commitment to shareholder returns.
Negative
ATS Segment Revenue Decline: ATS segment revenues were 5% lower year-over-year, driven by continued softness in the industrial business, which remains dynamic across several submarkets.
Enterprise Revenue Decline: The anticipated decline in enterprise end market revenues is expected to be in the low double-digit percentage range due to a technology transition in a large sole-source AI/ML compute program, with a new program expected to ramp in the latter half of 2025.
ATS Segment Margin Decline: The ATS segment margin in the third quarter was 4.8%, down 10 basis points, primarily due to lower operating leverage in the industrial end market, despite improvements in capital equipment and A&D.
Cash Deposit Decline: Cash deposits were $521 million at the end of the quarter, lower by $55 million sequentially and $354 million lower year-over-year, indicating a reduction in cash reserves as the company returns cash deposits back to customers.
Adjusted Free Cash Flow Outlook: The company anticipates that adjusted free cash flow for 2024 will be $275 million, which is lower than the previous outlook of $250 million, reflecting potential challenges in cash generation.
CLS FAQs
How does CLS typically perform around its earnings report dates?
Is Celestica Inc. (CLS) Q3 2024 Earnings Call and Virtual Investor Meeting Conference Call Summary positive or negative?
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CLS Earning Call Sentiment
Celestica Inc. (CLS) Q3 2024 Earnings Call and Virtual Investor Meeting Conference Call Transcript
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CLS.N
-13.31%Positive
The earnings call summary highlights strong financial performance with increased revenue, EPS, and margins, along with significant share repurchases. The Q&A reveals optimism about growth in communications, AI/ML space entry, and partnerships with hyperscalers. Despite some vague management responses, the overall sentiment is positive, supported by optimistic guidance and strategic wins, suggesting a likely stock price increase of 2% to 8%.
