Celestica Earnings Preview: What Investors Should Know
Overview of Upcoming Earnings for Celestica
Celestica Inc. (NYSE: CLS) is set to announce its earnings soon. Analysts are eagerly anticipating this quarterly report and have set an earnings per share (EPS) expectation of $1.17.
Understanding Earnings Expectations
Investors hope that Celestica will surpass this EPS estimate and provide positive guidance for future growth. Guidance generally holds more weight in influencing the stock price than the earnings beat or miss itself.
Reviewing Past Earnings Performance
Looking at Celestica's past earnings, the company previously exceeded EPS expectations by $0.08, but this led to a surprising 3.35% decline in stock price during the next session.
Share Price Movement
As of the last trading day, Celestica shares were priced at $163.98, marking a remarkable 232.24% increase over the last year. This significant gain suggests that long-term investors remain optimistic as the company approaches its earnings release.
Analysts' Perspective on Celestica
Market perceptions and analyst ratings are essential for investors. Currently, nine analysts have rated Celestica, mostly favoring an Outperform stance. The average one-year price target is around $135.22, indicating a potential downside of 17.54%.
Competitive Analysis of the Sector
To provide context, it's vital to compare Celestica's ratings with key competitors like Flex, Jabil, and Fabrinet. These comparisons help analysts evaluate relative market performance.
- Flex holds an Outperform rating, but with a price target suggesting a significant downside of 67.27%.
- Jabil has a Buy rating with a target indicating potential growth of 33.14%.
- Fabrinet also holds a Buy rating and shows a promising upside of 63.33%.
Detailed Peer Review of Market Performance
Through comprehensive peer reviews, we gain insight into the performance of Celestica relative to its main competitors, focusing on crucial metrics such as revenue growth and profitability.
Celestica's Competitive Standing
The analysis indicates that while Celestica shows exceptional Return on Equity (ROE) at 4.99%, it lags in both revenue growth and gross profit compared to its competitors. This presents a mixed performance outlook.
About Celestica Inc.
Celestica specializes in supply chain solutions across two segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Their ATS segment includes various industries such as aerospace, defense, and healthcare, while the CCS segment caters to communications and enterprise needs.
Financial Performance Insights
Market Capitalization: Celestica boasts a market capitalization above the industry average, highlighting its substantial market presence.
Growth Metrics: The company reported a notable revenue growth rate of 19.91%, outshining many peers within the tech sector.
Profitability Metrics: The net margin of 3.25% indicates effective cost management and profitability, surpassing the industry norm.
Return on Assets (ROA): With an impressive ROA of 1.46%, Celestica demonstrates efficient asset utilization.
Debt Management Concerns: A debt-to-equity ratio of 0.6 raises concern over financial risks and cautious management.
Frequently Asked Questions
What are the main earnings expectations for Celestica?
Analysts expect an EPS of $1.17 from Celestica's upcoming earnings report.
How has Celestica's stock performed over the past year?
Celestica shares have increased significantly by 232.24% over the last year.
What is the consensus rating from analysts regarding Celestica?
The consensus rating for Celestica is Outperform, with an average price target of $135.22.
What challenges does Celestica currently face?
Celestica's primary challenge involves its ability to manage debt effectively amidst impressive revenue growth.
How do Celestica's financials compare to its competitors?
While Celestica excels in ROE, it falls behind its competitors in areas like revenue growth and gross profit.
About The Author
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