Hardware platform and supply chain solutions company Celestica (TSX: CLS) (NYSE: CLS) skyrocketed in pre-market trading at the time of publishing on Thursday after the company’s adjusted earnings of $0.55 per share in Q2 compared to $0.44 in the same quarter last year.
Celestica’s revenues surged 13% year-over-year to $1.94 billion. Rob Mionis, President and CEO, Celestica commented, “Celestica delivered another strong quarter, exceeding the high end of our guidance ranges on revenue and non-IFRS adjusted EPS*, with our non-IFRS operating margin* firmly above 5.0%.”
Moreover, the company raised its FY23 outlook to revenues of at least $7.85 billion, from its prior outlook of $7.6 billion. FY23 adjusted earnings are forecasted to be $2.25 as compared to its previous outlook in the range of $2.00 to $2.05. When it comes to the third quarter, Celestica anticipates revenues in the range of $1.90 billion to $2.05 billion while adjusted earnings are likely to be between $0.56 and $0.62 per share.
Celestica stated in its press release, “As we look forward to 2024, we expect revenue growth across each of our businesses, supported by anticipated strong secular tailwinds and new program wins. We believe that this growth, with continuing margin strength, will lead to non-IFRS adjusted EPS* growth of 10%, or more in 2024, relative to our 2023 outlook.”
Analysts are cautiously optimistic about CLS stock with a Moderate Buy consensus rating based on one Buy and two Holds.
