Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Celestica (CLS) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since a ...

TORONTO, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Celestica Inc. (NYSE: CLS) (TSX: CLS), a leader in design, manufacturing, hardware platform and supply chain solutions for the world's most innovative companies, today announced that it has terminated its existing normal course issuer bid (the "Existing Bid"), which commenced on December 14, 2023 and had an expiry date of December 13, 2024, and the Toronto Stock Exchange (the "TSX") has accepted the Company's notice to launch a Normal Course Issuer Bid (the "New Bi ...

Shares of Celestica (CLS) have been strong performers lately, with the stock up 30.4% over the past month. The stock hit a new 52-week high of $68.44 in the previous session. Celestica has gained 132% since the start of the year compared to the 26.4% move for the Zacks Computer and Technology sector and the 23.3% return for the Zacks Electronics - Manufacturing Services industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surprises, as it hasn't missed our ear ...

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Celestica Inc. (CLS) recorded solid third-quarter results with  adjusted earnings and  revenues beating the respective Zacks Consensus Estimate. The Toronto-based electronics manufacturing service provider reported revenue growth year over year, backed by stronger-than-expected growth in the CCS segment.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Management’s strong emphasis on innovation, product diversification, and AI advancements are key growth drivers. Strong growth in adju ...

After reaching an important support level, Celestica (CLS) could be a good stock pick from a technical perspective. CLS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.The 20-day moving averag ...

Celestica Inc. (NYSE:CLS) Q3 2024 Earnings Call and Virtual Investor Meeting Conference Call October 23, 2024 5:00 PM ET Company Participants Craig Oberg – Vice President of Corporate Development and Investor Relations Rob Mionis – President and Chief Executive Officer Mandeep Chawla – Chief Financial Officer Jason Phillips – President, Connectivity and Cloud Solutions Todd Cooper – President, Advanced Technology Solutions Steven Dorwart – Senior Vice President, Hyperscalers and Service Provider Conference ...

Financial Data and Key Metrics - Q3 2024 revenue was $2.5 billion, up 22% YoY, exceeding the high end of guidance [8][10] - Adjusted EPS for Q3 was $1.04, $0.39 above the high end of guidance [8][10] - Non-IFRS operating margin improved to 6.7%, up 100 basis points YoY [8][10] - Adjusted gross margin was 10.7%, up 90 basis points YoY [13] - Adjusted ROIC improved to 28.6%, up 7.1% YoY [13] - Inventory balance at the end of Q3 was $1.83 billion, down $434 million YoY [14] - Adjusted free cash flow for Q3 was $75 million, compared to $34 million in the prior year period [15] Segment Performance Connectivity and Cloud Solutions (CCS) - CCS segment revenue grew 42% YoY to $1.69 billion, driven by strong demand from hyperscaler customers [8][11] - CCS segment margin improved to 7.6%, up 140 basis points YoY [8][12] - HPS (Hardware Platform Solutions) revenue grew 54% YoY to $761 million, accounting for 30% of total company revenue [12] - Enterprise end market revenue grew 38% YoY, driven by strong demand in the storage business [12] - Communications end market revenue grew 45% YoY, driven by demand for 400G and 800G networking switches [12] Advanced Technology Solutions (ATS) - ATS segment revenue declined 5% YoY to $814 million, driven by softness in the industrial business [8][11] - ATS segment margin was 4.8%, down 10 basis points YoY [12] - Aerospace and Defense (A&D) revenue grew 15% YoY [8] - Capital Equipment revenue grew 31% YoY [8] Market Performance - Hyperscaler customers accounted for 74% of CCS portfolio revenue in 2024 [31] - The Ethernet switch market for bandwidth of 400G and higher is expected to grow at a 52% CAGR over the next three years [42] - The AI server market is expected to grow from $100 billion in 2024 to over $250 billion by 2027 [48] Strategic Direction and Industry Competition - The company is focused on building a resilient, growth-oriented, and diversified portfolio to withstand cyclical fluctuations [27] - Investments in next-generation products and ODM capabilities are key strategic priorities [28] - The company is well-positioned to capitalize on the growing demand for AI infrastructure, with a focus on hyperscalers, digital-native companies, and sovereign data center projects [34][36] - The company is investing in advanced cooling systems and thermal management solutions to support the increasing power demands of AI silicon [47] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 2024 revenue to be in the range of $2.425 billion to $2.575 billion, representing 17% growth at the midpoint [18] - Full-year 2024 revenue is expected to be $9.6 billion, up 21% YoY, with adjusted EPS of $3.85, up 58% YoY [20] - For 2025, the company anticipates revenue of $10.4 billion, representing 8% growth, with adjusted EPS of $4.42, up 15% YoY [65] - The company expects CCS segment revenue to grow in the low double-digit percentage range in 2025, driven by hyperscaler programs and new AI/ML compute wins [65] Other Important Information - The company repurchased 2.2 million shares in Q3 at an average cost of $44 per share, totaling $100 million [17] - The company plans to transition from IFRS to U.S. GAAP reporting starting January 1, 2025 [22] - The company has a strong liquidity position with $399 million in cash and $750 million in borrowing capacity, providing total liquidity of $1.1 billion [16] Q&A Session Summary Question: Impact of Cisco entering the hyperscaler market - The company believes that hyperscalers still value optimized hardware and that its ODM capabilities provide a competitive advantage [73][74][75] Question: Back-end network opportunities and Ethernet switch market - The company sees strong demand for 400G and 800G Ethernet switches, with significant growth expected in the AI/ML networking infrastructure [77][78][79] Question: Growth prospects for the CCS segment in 2025 - The company expects strong double-digit growth in the communications end market, driven by 800G switches, while the enterprise end market may see a decline due to a technology transition [95][96] Question: Pricing pressure in the enterprise server business - The company differentiates itself through system-level innovation and advanced cooling solutions, which help mitigate pricing pressure [97][98][99] Question: Margin outlook for 2025 - The company expects a non-IFRS operating margin of 6.7% in 2025, with improvements in the ATS segment offsetting potential mix impacts in CCS [104][105] Question: Growth opportunities with digital-native companies - The company is engaging with digital-native companies, with opportunities to expand design involvement and leverage its ODM capabilities [121][122][123] Question: Hyperscaler CapEx and market growth - The company is monitoring hyperscaler CapEx trends, with strong growth expected in 2024 and low double-digit growth anticipated for 2025 [136][137][138]

Celestica (CLS) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.64%. A quarter ago, it was expected that this electronics manufacturing services company would post earnings of $0.82 per share when it actually produced earnings of $0.91, delivering a surprise of 10.98%.Over the last ...