- Celestica (TSX:CLS) stock has climbed nearly 35 per cent since the company posted its Q2 financial results
- The Toronto-based electronics company clocked in revenue of C$1.94 billion, a 13 per cent increase compared with Q2 2022’s C$1.72 billion
- Revenue from its advanced technology solutions segment increased 24 per cent from Q2 2022, while its connectivity and cloud solutions segment revenue increased 5 per cent above Q2 2022
- Celestica Inc. opened trading at C$28.98 per share
Celestica (TSX:CLS) stock has climbed nearly 35 per cent since the company posted its Q2 financial results.
Celestica’s revenue jumps
The Toronto-based electronics company clocked in revenue of C$1.94 billion, a 13 per cent increase compared to Q2 2022’s C$1.72 billion.
Revenue from its advanced technology solutions segment increased 24 per cent from Q2 2022, while its connectivity and cloud solutions segment revenue increased 5 per cent above Q2 2022.
Adjusted earnings per share under non-international financial reporting standards was $0.55, compared with $0.44 for Q2 2022.
The company’s president and CEO, Rob Mionis, said in a news release that the quarter exceeded the high end of its guidance ranges on revenue, with an operating margin above 5 per cent.
“Our business delivered solid results as our team continues to execute on our strategic plan and meet the evolving needs of our customers. Our diversified portfolio is driving revenue growth and margin expansion, despite softness in the semi capital equipment market. We are pleased to raise our 2023 annual financial outlook and expect our strong performance to continue into 2024 as all of our markets are poised for growth,” Mionis said in a statement.
Company eyes growth in 2023-2024 outlook
Looking ahead to Q3 2023, Celestica stated guidance of C$1.9 billion to C$2.05 billion in revenue. To 2024, the company expects revenue growth across each of its businesses, “supported by anticipated strong secular tailwinds and new program wins.” It is forecast that this growth will lead to a non-international financial reporting standards adjusted earnings per share increase of 10 per cent, or more.
Celestica Inc. designs and manufactures hardware platforms and supply chain solutions. The company operates in two segments: Advanced technology solutions and connectivity and cloud solutions. Advanced technology is composed of aerospace and defense, industrial, energy, health tech and capital equipment businesses. Its capital equipment business is composed of semiconductor, display and power and signal distribution equipment businesses.
Celestica Inc. opened trading at C$28.98 per share and has risen 114 per cent since this time last year.
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