Q: What are your predictions on CLS reporting tomorrow for Q4? Is it a smart or risky buy at this time? Many thanks?
5i Research Answer:
EPS of $1.06 and revenue of $2.53B is expected. We would expect a beat/raise quarter, though any discussions of de-celeration in data centre business would be negative for sentiment. We doubt this will occur so soon but there may be comments on a 'potential' slowdown. We would not buy this just for a single quarter. But considering the giant drop on Monday, the expected growth and valuation, we would be more likely to be buyers overall.