Celestica Margin Pressure Likely to Continue on Macro Woes

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].