Celestica's Earnings Outlook

Celestica CLS is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Celestica to report an earnings per share (EPS) of $0.93.

The announcement from Celestica is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.10, leading to a 4.35% drop in the share price on the subsequent day.

Here's a look at Celestica's past performance and the resulting price change:

Performance of Celestica Shares

Shares of Celestica were trading at $56.68 as of October 21. Over the last 52-week period, shares are up 122.8%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Celestica

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Celestica.

The consensus rating for Celestica is Buy, based on 6 analyst ratings. With an average one-year price target of $63.17, there's a potential 11.45% upside.

Comparing Ratings Among Industry Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Fabrinet, Plexus and IPG Photonics, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Fabrinet, with an average 1-year price target of $256.2, indicating a potential 352.01% upside.
• The consensus among analysts is an Buy trajectory for Plexus, with an average 1-year price target of $147.25, indicating a potential 159.79% upside.
• IPG Photonics received a Buy consensus from analysts, with an average 1-year price target of $100.0, implying a potential 76.43% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for Fabrinet, Plexus and IPG Photonics, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

In terms of revenue growth, Celestica is at the top among its peers. It also leads in gross profit margin. However, its return on equity is the lowest compared to others. Overall, Celestica is positioned favorably in revenue growth and gross profit, but lags behind in return on equity.

Delving into Celestica's Background

Celestica Inc offers supply chain solutions. The company has two operating and reportable segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of the ATS end market and is comprised of the Aerospace and Defense, Industrial, health tech, and Capital Equipment businesses. Its Capital Equipment business is comprised of the semiconductor, display, and robotics equipment businesses, and the CCS segment consists of Communications and Enterprise end markets, Enterprise end market is comprised of its servers and storage businesses. The company generates a majority of its revenue from the Connectivity & Cloud Solutions segment.

Celestica's Economic Impact: An Analysis

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Celestica's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.33% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Celestica's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Celestica's ROE excels beyond industry benchmarks, reaching 5.67%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Celestica's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.72%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.53.

To track all earnings releases for Celestica visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.