Celestica Stock Tumbles 15.7% Despite Q1 Revenue of $4.05B and Beat
Celestica reported Q1 revenue of $4.05B, up 53% year-over-year, and adjusted EPS of $2.16, beating expectations. The company lifted FY sales guidance to $19B and EPS outlook to $10.15, yet shares plunged 15.7% on a valuation pullback.
1. Q1 Earnings and Revenue Growth
Celestica delivered revenue of $4.05B in the first quarter, marking a 53% year-over-year increase, and reported adjusted EPS of $2.16. These results surpassed analyst models and underscored robust demand in its electronics manufacturing services and supply-chain support segments.
2. Full-Year Guidance and Market Reaction
Following the quarter, Celestica raised its full-year sales guidance to $19B and adjusted EPS outlook to $10.15, reflecting confidence in continued data center and cloud infrastructure investments. Despite this bullish outlook, the stock fell 15.7%, indicating investor concerns over stretched valuations and future momentum.
3. Premium Valuation and Investor Caution
Celestica now trades at a P/E ratio of 46.9x, significantly above ODM peers and sector medians, suggesting much of its growth has been priced in. The sharp share decline highlights market skepticism about sustainability of elevated expectations and long-term profitability.