The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Celestica met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share increased significantly.
Margins grew across the board.
Celestica reported revenue of $1.75 billion. The 13 analysts polled by S&P Capital IQ predicted sales of $1.78 billion. Sales were 6.5% lower than the prior-year quarter's $1.88 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.33. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share on the same basis. GAAP EPS of $0.23 for Q4 were 189% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 7%, 50 basis points better than the prior-year quarter. Operating margin was 3.2%, 50 basis points better than the prior-year quarter. Net margin was 3.9%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.66 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $7.33 billion. The average EPS estimate is $1.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 161 members out of 181 rating the stock outperform, and 20 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Celestica a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Celestica is hold, with an average price target of $9.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.