Core Insights - Celestica Inc. has launched the ES1500, a new 1U campus access switch with up to 48 ports and 2.5GbE per port, aimed at meeting the demands of enterprise edge networks [1][2] - The ES1500 provides up to 220 Gbps of switching capacity and offers 2.5X faster port speeds compared to the previous ES1000 model, catering to edge IoT and edge-AI applications [2][3] - The switch is designed to optimize capital and operational expenditures while ensuring reliability and performance for modern IT infrastructure [2][3] Product Features - The ES1500 supports complex connectivity needs on enterprise campuses, addressing the increasing number of IoT devices and AI-intensive workloads [3] - It includes features such as cost-effectiveness with scalable access in a 1U form factor, reliability with redundant features, and flexibility with 90W PoE++ for connected devices [5] - The switch is suitable for various use cases, including IoT/OT, with a fanless design that supports an extended temperature range [5] Company Overview - Celestica partners with leading companies across multiple sectors, including Aerospace and Defense, Communications, and HealthTech, to provide solutions for complex challenges [4] - The company emphasizes a customer-centric approach and has a global presence with teams in North America, Europe, and Asia [4]

Company Overview - Celestica is one of the largest electronics manufacturing services companies globally, headquartered in Ontario, Canada, serving original equipment manufacturers and various service providers across multiple industries [11] - The company offers a wide range of manufacturing and supply-chain solutions, including design and development, engineering services, electronics manufacturing and assembly, and IT asset management [11] Investment Potential - Celestica holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a solid position in the market [12] - The company is particularly appealing to growth investors, with a Growth Style Score of A and a forecasted year-over-year earnings growth of 30.2% for the current fiscal year [12] - Recent upward revisions in earnings estimates by three analysts for fiscal 2025 have increased the Zacks Consensus Estimate by $0.28 to $5.05 per share, showcasing positive market sentiment [12] - Celestica has an average earnings surprise of 7.4%, further indicating its potential for outperforming expectations [12][13]

Core Points - Celestica Inc. announced the election of its board of directors at the Annual and Special Meeting of Shareholders [1] - The company also approved the 2025 Long Term Incentive Plan and the adoption of By-Law 2 (Advance Notice) [2] Board of Directors Election - Eight nominees were elected as directors, with the following vote results: - Kulvinder (Kelly) Ahuja: 69,261,385 votes (96.31% for) [2] - Robert A. Cascella: 68,052,645 votes (94.63% for) [2] - Françoise Colpron: 66,527,817 votes (92.51% for) [2] - Jill Kale: 71,011,261 votes (98.75% for) [2] - Amar Maletira: 71,605,054 votes (99.57% for) [2] - Robert A. Mionis: 71,828,648 votes (99.88% for) [2] - Luis A. Müller: 68,635,849 votes (95.44% for) [2] - Michael M. Wilson: 67,237,060 votes (93.50% for) [2] Company Overview - Celestica is a leader in design, manufacturing, and supply chain solutions, partnering with companies in various sectors including Aerospace and Defense, Communications, and HealthTech [3] - The company emphasizes a customer-centric approach and provides solutions throughout the product development lifecycle [3]

Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]

Group 1 - Celestica's stock closed at $130.73, reflecting a +2.38% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.38% [1] - The stock has increased by 12.55% over the past month, surpassing the Computer and Technology sector's gain of 11.61% and the S&P 500's gain of 6.6% [1] Group 2 - Celestica is projected to report earnings of $1.23 per share, indicating a year-over-year growth of 35.16%, with anticipated revenue of $2.65 billion, representing a 10.95% increase from the same quarter last year [2] - For the annual period, earnings are expected to be $5.05 per share and revenue at $10.91 billion, reflecting increases of +30.15% and +13.15% respectively from the previous year [3] Group 3 - The Zacks Rank system, which evaluates estimate revisions, indicates that positive revisions reflect analysts' confidence in business performance [4][5] - Celestica currently holds a Zacks Rank of 3 (Hold), with no changes in the consensus EPS estimate over the past month [5] Group 4 - Celestica's Forward P/E ratio is 25.27, which is higher than the industry average of 19.72, indicating a premium valuation [6] - The Electronics - Manufacturing Services industry is ranked 203 in the Zacks Industry Rank, placing it in the bottom 18% of over 250 industries [6][7]

Core Insights - Celestica Inc. (CLS) expresses skepticism regarding the macro environment due to trade policy uncertainty, although recent U.S. government exemptions for key data center IT hardware provide some near-term clarity [1][7]. Company Overview - Celestica's products are sophisticated and based on the latest technological innovations, leading to high research and development costs, which pressure margins [2][7]. - The company has over two decades of manufacturing experience and aims to deliver next-generation, cloud-optimized data storage and industry-leading networking AI solutions [3]. Market Position and Performance - Celestica operates primarily as a behind-the-scenes partner for other electronics businesses and is considered a lesser-known beneficiary of the AI revolution [3]. - The company's stock has surged 125.8% over the past year, outperforming the industry growth of 56.4% [6][7]. Financial Metrics - Celestica's forward price-to-sales ratio is 1.26, which is above the industry average [9]. - The Zacks Consensus Estimate for CLS' earnings for 2025 has been increasing over the past 60 days, indicating positive sentiment [10]. Earnings Estimates - The current earnings estimates for Q1, Q2, E1, and F2 are 1.23, 1.29, 5.05, and 6.07 respectively, with revisions showing an upward trend [11].

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing ! There is a free trial and a special discount of 10% for you. Join us today!I initiated my investment coverage of Celestica Inc. ( CLS ) stock in August 2023, initially with a "Buy" rating, which I then changed to "Hold" and back depending on market conditions and CLS's varying valuation levels. My most recent article on CLSDaniel Sereda is ...

Since my last coverage , Celestica (NYSE: CLS ) has surged over 50% outpacing the S&P 500’s 11% return. Celestica is quietly emerging as one of the strongest high-performance networking plays in the AI hardware stack. Fueled by surging demand for 800G EthernetHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc ...

Company Overview - Celestica is one of the largest electronics manufacturing services companies globally, headquartered in Ontario, Canada, serving original equipment manufacturers and various service providers across multiple industries [12] - The company offers a wide range of manufacturing and supply-chain solutions, including design and development, engineering services, electronics manufacturing and assembly, and IT asset management [12] Investment Ratings - Celestica holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [13] - The company is considered a potential top pick for growth investors due to its strong Growth Style Score of A, forecasting a year-over-year earnings growth of 30.2% for the current fiscal year [13] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.27 to $5.05 per share [13] - Celestica has an average earnings surprise of 7.4%, suggesting a positive trend in earnings performance [13] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Celestica is recommended for investors' consideration [14]

Core Insights - Celestica Inc. (CLS) has outperformed the industry and peers with a stock gain of 24.3% over the past three months, compared to the industry's 15.4% growth and Flex Ltd. (FLEX) and Jabil Inc. (JBL) gains of 17.3% and 14.7%, respectively [1][7]. Group 1: Company Overview - Celestica has over two decades of manufacturing experience and operates a simplified global network, focusing on next-generation, cloud-optimized data storage and AI networking solutions [2]. - The company serves as a behind-the-scenes partner for electronics businesses, providing a comprehensive range of services including design, manufacturing, and supply chain management [2]. Group 2: Growth Drivers - The ongoing generative AI (GenAI) boom has significantly benefited Celestica, driven by strong demand for AI/ML compute and networking products from hyperscale customers [5]. - The launch of high-performance 800G network switches and scalable AI storage platforms has positioned Celestica as a key player in supporting AI applications and data center solutions [5][6]. Group 3: Financial Performance - Earnings estimates for Celestica have increased by 5.7% for 2025 to $5.05 and by 2.4% for 2026 to $6.07, indicating positive sentiment regarding the company's growth potential [8]. Group 4: Market Challenges - Despite healthy demand trends, Celestica expresses skepticism about the macro environment due to trade policy uncertainties, although recent U.S. government exemptions for key IT hardware provide some near-term clarity [9]. - The company faces ongoing margin pressures due to high research and development costs and operating expenses, which have historically impacted profitability [10][15]. - Intense competition from industry giants like Foxconn, Jabil, Flex, and regional players, along with the cyclical nature of the semiconductor industry, poses additional challenges [11]. Group 5: Future Outlook - Celestica is well-positioned for sustained growth, supported by robust infrastructure investments and extensive industry experience, despite current volatility in the macroeconomic landscape [14].