Q4: Rev and EPS Beat Wraps up Year another Strong Year… Real strong revenue growth 7.2% when the street was only looking for about half of that at 3%, on a strong EPS Beat to 0.41/share up 51.8% YoY.
That wraps up the year with Revenue growth up 7% on EPS growth of 52.1% as well. This year showed the operationally efficiency that CLS was able to drive the huge EPS growth on incremental sales gains.
On a Valuation Basis this name is now so cheap trading at 9x trailing earnings when management is still projecting revenue and EPS growth for 2018. CLS has always traded at a discount to peers, time for that valuation gap to close as management has demonstrated that they are still seeing growth in the underlying business (Projected 7%+ Revenue growth for Q1 given midpoint of range).
A reasonable12x P/E number on trailing earnings puts it at 21.85/share or over 30% upside.
545M in cash sitting in the bank doesn’t hurt either.
LONG