Canada's Celestica Q2 results beat estimates on strong data center, cloud demand
CLS•Q2 results beat expectations
Canada's Celestica said second-quarter revenue rose 62% and beat analyst expectations, while adjusted earnings per share also came in above estimates.
The company said revenue exceeded guidance because of higher-than-anticipated customer demand and strong operational execution.
Key reported figures and market context
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q2 Revenue | $4.70 billion | $4.39 billion (9 analysts) |
| Q2 Adjusted EPS | $2.54 | $2.30 (10 analysts) |
| Q2 EPS | $3.17 | |
| Q2 Adjusted EBIT Margin | 8.20% |
The current average analyst rating on the shares is buy, with 8 strong buy or buy recommendations, no hold ratings and no sell or strong sell ratings.
The average consensus recommendation for the electronic equipment and parts peer group is buy.
The stock recently traded at 24 times the next 12-month earnings, versus a P/E of 29 three months ago.
Data center and cloud demand drive growth
CCS segment revenue rose 84% year-over-year, with margin improvement, driven by demand for data center infrastructure and hardware platform solutions.
