Earnings Preview for Celestica

On Wednesday, April 28, Celestica CLS will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Celestica management projections, analysts predict EPS of $0.2 on revenue of $1.22 billion. Celestica EPS in the same period a year ago totaled $0.16. Revenue was $1.32 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 25.0% increase for the company. Sales would have fallen 7.51% from the same quarter last year. Celestica's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Celestica were trading at $8.435 as of April 26. Over the last 52-week period, shares are up 37.85%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Celestica is scheduled to hold the call at 08:00:00 ET and can be accessed here.