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 contracted and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Celestica chalked up revenue of $1.50 billion. The 11 analysts polled by S&P Capital IQ looked for a top line of $1.49 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $1.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS of $0.04 for Q4 were 88% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.7%, 30 basis points worse than the prior-year quarter. Operating margin was 0.2%, 320 basis points worse than the prior-year quarter. Net margin was 0.5%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $6.01 billion. The average EPS estimate is $0.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 161 members out of 182 rating the stock outperform, and 21 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 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 $7.76.
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