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  5. CLS: Hello, Could you please comment on Celestica's results. [Celestica Inc.]
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Q: Hello,
Could you please comment on Celestica's results.
Looks like, the Co blew past estimates and raised their guidance, as well.
Stock is up 17%, in after hours trade at 5.30 PM.
We just started a 2% position, taking advantage of sharp drop, on Monday.
(Thank you for your prompt response, which really helped !! )
Will you be comfortable adding to the position or wait, for a 3-5 years hold ?

Thank You
Asked by rajeev on January 30, 2025
5i Research Answer:

It was a solid quarter and forecast. EPS of $1.11 beat estimates of $1.06; revenue of $2.55B marginally beat estimates. EBITDA also beat slightly. Revenue rose 19%. Operating margin moved to 6.8% from 6.0%. 2025 sales guidance went from $10.4B to $10.7B, and we imagine the company is being conservative here. EPS guidance moves to $4.75 from $4.42 (US$). Before any moves today that makes the stock 21X earnings and we think quite attractive. CLS also announced some customer hyperscaler contract wins which should take some of the pressure off of concerns on AI slowdowns. We would be comfortable adding, within the context that AI sentiment is in flux right now, and we do not know the regular market hour price which may change from pre market (up 13%). But there is good growth here at a quite-attractive valuation, and CLS continues to execute very well. The 28% drop on Monday certainly seems overdone in the context of this report.