Celestica’s Strong Q1 Performance: A Detailed Analysis Of Financial Results And Future Projections
$CLS
Celestica Inc. (NYSE:CLS), the Toronto-based company reported a net income of $86.2 million, translating to a per-share basis net income of 74 cents. When adjusted for stock option expense and non-recurring costs, earnings stood at $1.20 per share. This performance surpassed Wall Street predictions, where the average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.11 per share.
Additionally, Celestica posted revenue of $2.65 billion for the period, also beating Street forecasts, which anticipated $2.55 billion. Its GAAP earnings from operations as a percentage of revenue were 4.9%, compared to 5.7% for the same period last year. Notably, the adjusted operating margin (non-GAAP) was 7.1%, an improvement from 5.9% in Q1 2024. The first quarter of 2025 marked significant achievements for Celestica, with revenue increasing 20% compared to $2.21 billion for the first quarter of 2024.
The company’s performance is segmented into two main areas: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment, which includes Aerospace and Defense, Industrial, HealthTech and Capital Equipment businesses, saw a revenue increase of 5% to $0.81 billion. The CCS segment, covering Communications and Enterprise (servers and storage) end markets, reported a revenue of $1.84 billion, marking a 28% increase compared to Q1 2024.
Looking ahead to the current quarter ending in June, Celestica has set its per-share earnings expectations to range between $1.17 and $1.27 and the revenue to be in the range of $2.58 billion to $2.73 billion for the fiscal second quarter. For the full year, Celestica expects earnings to be $5 per share, with revenue projected at $10.85 billion.
Celestica’s President and CEO, Rob Mionis, highlighted the company’s exceptional quarter, noting that both revenue and non-GAAP adjusted EPS surpassed the high end of their guidance ranges. In response to these results and a strengthening demand outlook from their CCS customers, Celestica is raising its full-year 2025 outlook, now expecting revenue to reach $10.85 billion, an increase from the prior $10.7 billion and anticipating non-GAAP adjusted EPS of $5.00, up from the previous $4.75.
Celestica’s strategic focus on design, manufacturing, hardware platform and supply chain solutions continues to position it as a leader in serving the world’s most innovative companies. With a global presence and a customer-centric approach, Celestica is well-equipped to navigate the complexities of the market and leverage opportunities for continued growth and success in the evolving electronics manufacturing landscape.
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