Latest news with #Celestica
Yahoo
2 days ago
- Business
- Yahoo
Celestica (CLS) Earnings Expected to Grow: Should You Buy?
The market expects Celestica (CLS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. Zacks Consensus Estimate This electronics manufacturing services company is expected to post quarterly earnings of $1.24 per share in its upcoming report, which represents a year-over-year change of +36.3%. Revenues are expected to be $2.65 billion, up 11% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Earnings Whisper Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). How Have the Numbers Shaped Up for Celestica? For Celestica, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.81%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Celestica will most likely beat the consensus EPS estimate. Does Earnings Surprise History Hold Any Clue? While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Celestica would post earnings of $1.11 per share when it actually produced earnings of $1.20, delivering a surprise of +8.11%. Over the last four quarters, the company has beaten consensus EPS estimates three times. Bottom Line An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Celestica appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. An Industry Player's Expected Results Among the stocks in the Zacks Electronics - Manufacturing Services industry, Celestica (CLS), is soon expected to post earnings of $1.24 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +36.3%. This quarter's revenue is expected to be $2.65 billion, up 11% from the year-ago quarter. The consensus EPS estimate for Celestica has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.81%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Celestica will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celestica, Inc. (CLS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
It's time to take some profits in this high-flying Canadian tech stock
It has been a mediocre year for Canadian tech stocks. The S&P/TSX Information Technology index is ahead only 8.31 per cent year to date, less than the TSX Composite. Our biggest tech company, Shopify (SHOP-T), is doing somewhat better, with a gain of about 14 per cent so far in 2025. But that's well off the pace of last year's 48 per cent gain. Constellation Software (CSU-T) is up about 12 per cent year-to-date, also well short of its pace last year when it gained 35 per cent. Another 2024 high-flyer, Descartes Systems (DSG-T), which specializes in providing solutions for import/export businesses, is down almost 12 per cent as global trade slows in the face of Donald Trump's tariff blitz. There is one major exception to these disappointing results. Shares in Celestica (CLS-T) continue their strong uptrend, now in its third year. The stock had traded in the $5 to $15 range from 2005 to the spring of 2023. Then it suddenly took off, posting gains of 154 per cent in 2023 and 242 per cent in 2024. So far this year, it's up about 66 per cent. I added Celestica to my Internet Wealth Builder recommended list in November 2023 at $38.46. At that point, the p/e ratio was a very reasonable 16.72. The shares closed Friday at $219.79, up 471 per cent from our original recommendation. The p/e is now at 44.86, which is high but not outlandish for a tech stock (Nvidia is trading at 55 times earnings). Here's the latest update on Celestica. Celestica (TSX, NYSE: CLS) Originally recommended on Nov. 20/23 at C$38.46, US$28.05. Closed Friday at C$219.79, US$160.12. Background: Toronto-based Celestica was originally part of IBM. In 1996, it was sold to Onyx Corp. It began trading publicly in 1998 with the sale of 20.6 million shares at US$17.50. The company employs 26,000 people. Celestica has two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of its Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses. The CCS segment consists of the company's Communications and Enterprise (servers and storage) end markets. Performance: The share price took a dive in January and plunged again in April in the wake of the 'Liberation Day' tariff announcements. However, it recovered quickly and recently hit a new high of $224.36. Recent developments: First quarter results continued to show strong growth in revenue and earnings. Revenue for the three months to March 31 was $2.65 billion, up 20 per cent from the same period in 2024. Adjusted earnings per share came in at $1.20 compared to $0.83 the year before. Note that the company reports in U.S. dollars. CEO Rob Mionis said both figures surpassed the upper end of the company's guidance range. 'This strong performance was further highlighted by our highest ever adjusted operating margin of 7.1 per cent,' he added. The first quarter results and a strengthening demand have resulted in new guidance for the full 2025 fiscal year. Celestica now expects revenue to reach $10.85 billion, an increase from the prior forecast of $10.7 billion. Adjusted earnings per share are expected to be $5.00, up from the previous guidance of $4.75. Second quarter results will be released on July 29. Dividend and buybacks: The stock does not pay a dividend, but the company spent $75 million in the quarter to buy back 600,000 shares. Outlook: The strong first quarter results and the improved revenue and profit guidance are encouraging. Conclusion: I've advised our readers to take half profits on the stock. New investors may want to watch for dips, preferably below $210, to take an initial position. Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.
Yahoo
2 days ago
- Business
- Yahoo
Aviz Invites Enterprises to Join Deep Network Observability Testing Interop Across Major Hardware Platforms — Built for the AI Era
In collaboration with Celestica, Cisco, Dell, Edgecore, and NVIDIA, the interop tests real-world use cases and delivers detailed performance reports. SAN JOSE, Calif., July 21, 2025--(BUSINESS WIRE)--Aviz today announced the Deep Network Observability (DNO) Interop — a collaborative initiative enabling enterprises to validate a software-first observability stack across diverse, multi-vendor infrastructure, including data center, edge, and AI fabrics. The interop addresses the growing demand for a new observability model among enterprises — one that is open, intelligent, and built to scale with the evolving needs of AI-driven infrastructure. "Observability must evolve for the AI era — open, software-first, and real-time," said Thomas Scheibe, Chief Product Officer at Aviz Networks. "This Interop proves it's not just possible. Enterprises can test their use cases, assess various deployment options, or join us live to see the results." Key Benefits for Participating: Test your current use case on an open, software-first observability stack — and see how it complements or extends your existing tools with added flexibility and cost-efficiency. Experience AI-powered insights that transform observability — from click-based operations to a natural, conversational workflow. Receive a custom TCO and migration report to guide your next observability refresh or infrastructure transition. See Packet Broker and Service Nodes in action — tested live across Dell, Celestica, Cisco, Edgecore, and NVIDIA platforms. The Interop features three software components tested across multiple HW platforms Open Packet Broker (OPB): A software-only, multi-vendor solution delivering line-rate packet processing, slicing, filtering, and tunnel termination. Open Packet Broker runs on standard network platforms. Aviz Service Node (ASN): A software-only, multi-vendor solution delivering line-rate Deep Packet Inspection, application and subscriber meta-data extraction, deduplication, and packet capture. Aviz Service Node runs on standard x86-based servers with optional DPU acceleration via NVIDIA BlueField®-3. Network Copilot™: A software-only LLM-powered private AI solution for enterprises with pre-build agents for compliance, troubleshooting, and capacity planning use cases. Interop Outcome: Detailed Report on AI-Ready Observability Stack Join us for the Interop Webinar on August 7th, where we'll present the key outcomes, including: A technical report comparing legacy solutions with modern software-first observability stacks — covering packet brokers, service nodes, and insights. Real-world TCO analysis for customers evaluating infrastructure refresh options. Migration guides and a customer case study, showcasing the value realized and the step-by-step migration process. Register for the webinar today at: What Our Partners Are Saying Celestica "Our high-performance switching platforms provide an ideal foundation for open observability," said Gavin Cato, Head of Portfolio Solutions and CTO, Connectivity and Cloud Solutions, Celestica. "Partnering with Aviz highlights how enterprises can achieve visibility — using Celestica switches and a software-first stack." Cisco "As AI drives new demands on infrastructure, customers want solutions that are open, scalable, and easy to integrate," said Jeremy Foster, GM & SVP, Cisco Compute. "Cisco UCS is built for exactly this kind of open innovation. Aviz Service Node and Network Copilot—running on UCS with NVIDIA acceleration—showcases the power of combining open software with trusted enterprise platforms to help customers modernize for the AI era." Edgecore "As customers deploy AI clusters, achieving peak performance with scale-out network infrastructure becomes essential. An open, scalable, and interoperable Distributed Network Operating (DNO) capability is key to meeting these demands," said Nanda Ravindran, VP of Product Management at Edgecore Networks. "Edgecore's AIS800 family of open Ethernet switches, combined with open software, empowers enterprises to build innovative and cost-effective network solutions for both AI workloads and traditional cloud data centers." About Aviz Networks Aviz's mission is to deliver Networks for AI and AI for networks. Aviz was founded to modernize and transform networking software solutions, addressing the evolving demands of data centers, edge, and GPU networks as they scale and integrate AI. By providing multi-vendor solutions, Aviz empowers enterprises with the flexibility of hardware choices, operational control, standardization, cost savings, and AI-powered tools to manage modern networks. Aviz investors include Cisco, Qualcomm, Alter Ventures, Moment Ventures, Celestica, Edgecore, Wistron and a few more, as well as a strong advisory board. Aviz's innovations have been successfully deployed by leading e-commerce platforms, telecommunications providers, retailers, GPU-as-a-service providers, cloud service providers, and diverse enterprise networks. For more information, visit us at View source version on Contacts Ilona Gabinsky at ilona@ at 415-238-1396 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
2 days ago
- Business
- Business Wire
Aviz Invites Enterprises to Join Deep Network Observability Testing Interop Across Major Hardware Platforms — Built for the AI Era
SAN JOSE, Calif.--(BUSINESS WIRE)--Aviz today announced the Deep Network Observability (DNO) Interop — a collaborative initiative enabling enterprises to validate a software-first observability stack across diverse, multi-vendor infrastructure, including data center, edge, and AI fabrics. 'Observability must evolve for the AI era — open, software-first, and real-time,' said Thomas Scheibe, Chief Product Officer at Aviz Networks. Share The interop addresses the growing demand for a new observability model among enterprises — one that is open, intelligent, and built to scale with the evolving needs of AI-driven infrastructure. 'Observability must evolve for the AI era — open, software-first, and real-time,' said Thomas Scheibe, Chief Product Officer at Aviz Networks. 'This Interop proves it's not just possible. Enterprises can test their use cases, assess various deployment options, or join us live to see the results.' Key Benefits for Participating: Test your current use case on an open, software-first observability stack — and see how it complements or extends your existing tools with added flexibility and cost-efficiency. Experience AI-powered insights that transform observability — from click-based operations to a natural, conversational workflow. Receive a custom TCO and migration report to guide your next observability refresh or infrastructure transition. See Packet Broker and Service Nodes in action — tested live across Dell, Celestica, Cisco, Edgecore, and NVIDIA platforms. The Interop features three software components tested across multiple HW platforms Open Packet Broker (OPB): A software-only, multi-vendor solution delivering line-rate packet processing, slicing, filtering, and tunnel termination. Open Packet Broker runs on standard network platforms. Aviz Service Node (ASN): A software-only, multi-vendor solution delivering line-rate Deep Packet Inspection, application and subscriber meta-data extraction, deduplication, and packet capture. Aviz Service Node runs on standard x86-based servers with optional DPU acceleration via NVIDIA BlueField®-3. Network Copilot™: A software-only LLM-powered private AI solution for enterprises with pre-build agents for compliance, troubleshooting, and capacity planning use cases. Interop Outcome: Detailed Report on AI-Ready Observability Stack Join us for the Interop Webinar on August 7th, where we'll present the key outcomes, including: A technical report comparing legacy solutions with modern software-first observability stacks — covering packet brokers, service nodes, and insights. Real-world TCO analysis for customers evaluating infrastructure refresh options. Migration guides and a customer case study, showcasing the value realized and the step-by-step migration process. Register for the webinar today at: What Our Partners Are Saying Celestica 'Our high-performance switching platforms provide an ideal foundation for open observability,' said Gavin Cato, Head of Portfolio Solutions and CTO, Connectivity and Cloud Solutions, Celestica. 'Partnering with Aviz highlights how enterprises can achieve visibility — using Celestica switches and a software-first stack.' Cisco 'As AI drives new demands on infrastructure, customers want solutions that are open, scalable, and easy to integrate,' said Jeremy Foster, GM & SVP, Cisco Compute. 'Cisco UCS is built for exactly this kind of open innovation. Aviz Service Node and Network Copilot—running on UCS with NVIDIA acceleration—showcases the power of combining open software with trusted enterprise platforms to help customers modernize for the AI era.' Edgecore "As customers deploy AI clusters, achieving peak performance with scale-out network infrastructure becomes essential. An open, scalable, and interoperable Distributed Network Operating (DNO) capability is key to meeting these demands,' said Nanda Ravindran, VP of Product Management at Edgecore Networks. 'Edgecore's AIS800 family of open Ethernet switches, combined with open software, empowers enterprises to build innovative and cost-effective network solutions for both AI workloads and traditional cloud data centers." About Aviz Networks Aviz's mission is to deliver Networks for AI and AI for networks. Aviz was founded to modernize and transform networking software solutions, addressing the evolving demands of data centers, edge, and GPU networks as they scale and integrate AI. By providing multi-vendor solutions, Aviz empowers enterprises with the flexibility of hardware choices, operational control, standardization, cost savings, and AI-powered tools to manage modern networks. Aviz investors include Cisco, Qualcomm, Alter Ventures, Moment Ventures, Celestica, Edgecore, Wistron and a few more, as well as a strong advisory board. Aviz's innovations have been successfully deployed by leading e-commerce platforms, telecommunications providers, retailers, GPU-as-a-service providers, cloud service providers, and diverse enterprise networks. For more information, visit us at
Business Insider
3 days ago
- Business
- Business Insider
Celestica initiated with a Neutral at Citi
Citi analyst Atif Malik initiated coverage of Celestica (CLS) with a Neutral rating and $172 price target The company is gaining market share in the growing data center switch market but the shares are fully valued after rallying 70% year-to-date, the analyst tells investors in a research note. The firm says Celestica trades at a premium valuation. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
