Market MoversNo surprise here. GLTA
On the rise
Celestica Inc. jumped on the heels of the late Wednesday release of better-than-expected third-quarter results.
The Toronto-based electronics company reported revenue of US$2.5-billion, up 22 per cent year-over-year and ahead of the consensus forecast of US$2.41-billion as well as its own guidance (US$2.325-$2.475-billion). Adjusted earnings per share of US$1.04 also topped the Street’s estimate of 95 US cents.
“We remain Outperform on CLS and have raised our estimates and target price following solid Q3/24 results and guidance, driven by ongoing strength in CCS (specifically CLS’s switching business) which more than offset a softer quarter, and outlook, for ATS,” said BMO analyst Thanos Moschopoulos. “CLS announced a win with Groq for AI servers and a 1.6T switching win with a major hyperscaler. We believe the AI capex cycle, and CLS’s market position, will be more durable than the stock’s current valuation implies — and see further upside to the stock, particularly given CLS’s consistent margin execution.”