Celestica
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Celestica missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank.
Gross margins were steady, operating margins shrank, net margins increased.
Revenue details
Celestica recorded revenue of $1.58 billion. The 11 analysts polled by S&P Capital IQ expected revenue of $1.65 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.83 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.21 for Q3 were 8.7% lower than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 6.9%, about the same as the prior-year quarter. Operating margin was 2.0%, 110 basis points worse than the prior-year quarter. Net margin was 2.8%, 10 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $6.68 billion. The average EPS estimate is $0.87.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 161 members out of 183 rating the stock outperform, and 22 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 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 $8.58.
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