Celestica Inc. Stock News

The growth outlook is strong, driven by tailwinds in the CCS segments' end markets. The mix-shift driven EBIT margin thesis is playing out and has more runway as the higher-margin CCS is expected to continue outgrowing ATS. Inventory reduction is improving net working capital intensity, which can lead to a higher base of FCF conversion.

Celestica's stock surged 45.81% since my last article, driven by a significant EPS and revenue beat, reinforcing my strong buy recommendation. The CCS segment's rapid growth and higher margins are key drivers, contributing to firm-level revenue and EPS expansion. Management's conservative 2025 outlook is likely understated, with analysts buying into this narrative.

Celestica has been able to build a commanding position across a range of key sectors in recent years, supporting a Buy rating. Strong growth in earnings, a robust balance sheet, and tactical investments in technology set the company apart from competitors. After a tremendous rally in recent years, I still see further growth as sectors continue to surge.

Celestica's stock has surged, tripling in value over eleven months, but short-term upside appears limited due to overextended daily price charts and negative momentum divergence. Despite overbought conditions, long-term fundamentals remain strong, with impressive EPS growth driven by operating leverage and share repurchases, though margin expansion may slow. Valuation concerns arise as Celestic...

Celestica Inc.'s robust fundamentals and strong demand from the data center business continue to drive growth, supporting a Buy rating. The company's HPS networking switches revenue grew 54%, accounting for 30% of total revenue, highlighting its pivotal role in data centers. Management's revised 2024 guidance projects $9.6 billion in revenue and a 6.5% adjusted operating margin, indicating stro...

Celestica's stock has surged 50% in three months, driven by AI and data center tailwinds. Recent earnings report showed over 20% YoY revenue growth for three consecutive quarters, with record adjusted EPS of $1.04. The company's CCS segment, benefiting from data center investments, saw 42% YoY revenue growth, enhancing profitability and free cash flow.

CLS remains well positioned to report robust top/ bottom-lines, as observed in its supply agreements with numerous hyperscalers and AI-related companies. These developments have also contributed to its double beat FQ3'24 performance, raised FY2024 guidance, and exemplary FY2025 guidance. CLS' numbers are well supported by the robust AI market spending trends, as reported by TSM and numerous hyp...

Celestica's Q3 2024 report shows ~$2.5 billion in revenues - that was a 22% growth year over year, with the CCS segment experiencing a stunning 42% YoY expansion. We see Celestica continuing to raise internal expectations - the market is listening and following suit by also significantly raising revenue/EPS estimates en masse. Celestica still seems too undervalued to ignore. According to my cal...