Celestica Inc

BBG000BRW7Y9

Equity

ISIN null / Valor 926197

Toronto Stock Exchange (2024-04-30)

CAD 59.61-0.93%

Celestica Inc
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About company

Celestica Inc., listed on both the Toronto Stock Exchange (TSX: CLS) and the New York Stock Exchange (NYSE: CLS), operates at the forefront of the electronics manufacturing services industry. The company specializes in providing comprehensive design, manufacturing, hardware platform, and supply chain solutions tailored to meet the complex needs of some of the world's most innovative companies. With a focus on high-reliability markets, Celestica's services are designed to support the entire lifecycle of its clients' products, from the initial concept and design phases through to manufacturing and after-market services. This strategic positioning allows Celestica to serve a diverse range of sectors, including but not limited to, aerospace and defense, communications, enterprise computing, industrial, healthcare, smart energy, and semiconductor equipment.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

In the first quarter of 2024, Celestica Inc. reported a significant revenue increase of 20% compared to the same period in the previous year. The total revenue for Q1 2024 reached $2.21 billion, up from $1.84 billion in Q1 2023. This growth exceeded the high end of the company's guidance ranges, reflecting strong demand across its customer base.

Earnings Per Share Increase

Celestica Inc. achieved a substantial rise in adjusted earnings per share (EPS) in Q1 2024, with a figure of $0.86 compared to $0.47 in Q1 2023. This performance indicates a robust improvement in profitability and operational efficiency, surpassing the expectations set in the company's financial guidance.

Segment Performance

For Q1 2024, Celestica Inc. saw mixed results across its segments. The Connectivity & Cloud Solutions (CCS) segment experienced a remarkable revenue increase of 38% year-over-year, with a segment margin improvement to 7.0% from 5.8%. Conversely, the Advanced Technology Solutions (ATS) segment witnessed a slight revenue decline of 3%, although its margin improved to 4.7% from 4.4% in Q1 2023.

Operational Efficiency and Cash Flow

Celestica Inc. reported a non-IFRS operating margin of 6.2% for Q1 2024, an improvement from 5.2% in the previous year. Additionally, the company generated $65.2 million in adjusted free cash flow, a significant increase from $9.2 million in Q1 2023, demonstrating enhanced operational efficiency and cash generation capabilities.

2024 Outlook and Future Guidance

Encouraged by the strong performance in Q1 2024, Celestica Inc. has raised its full-year outlook for 2024. The company now anticipates revenue to reach $9.1 billion and has set a non-IFRS operating margin target of 6.1%. Adjusted EPS is expected to be $3.30, and adjusted free cash flow is projected at $250 million, indicating a positive trajectory for the remainder of the year.

Summarized from source with an LLMView Source

Key figures

306%1Y

482%3Y

524%5Y

Performance

46.2%1Y

40.8%3Y

43.3%5Y

Volatility