Celestica Earnings: Here’s Why Investors are Happy Now

Celestica Inc. (NYSE:CLS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.57%.

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Celestica Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36% to $0.16 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Decreased 18.84% to $1.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Celestica Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $1.38 billion.

Quoting Management: “Celestica delivered first quarter revenue consistent with our expectations, while achieving profitability at the high end of the guidance range driven through solid execution and disciplined cost management,” said Craig Muhlhauser, Celestica President and Chief Executive Officer. “With the overall economic outlook expected to remain challenging, we continue to focus our efforts on delivering value to our customers through strong operational performance, and on improving our financial performance through productivity improvements and effectively managing our costs and resources, while making the necessary investments to support our longer term objectives.”

Key Stats (on next page)…

Revenue decreased 8.27% from $1.5 billion in the previous quarter. EPS decreased 36% from $0.25 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.16. For the current year, the average estimate is a profit of $0.75, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)