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Celestica Beats on EPS But GAAP Results Lag

By Seth Jayson - Updated Apr 10, 2017 at 1:44PM

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Just the facts, Fool.

Celestica (NYSE: CLS) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Celestica met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Celestica notched revenue of $1.37 billion. The 11 analysts polled by S&P Capital IQ foresaw revenue of $1.38 billion on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $1.69 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 $0.16. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. Non-GAAP EPS of $0.16 for Q1 were 36% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.06 for Q1 were 70% lower than the prior-year quarter's $0.20 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 6.3%, 30 basis points worse than the prior-year quarter. Operating margin was 1.2%, 150 basis points worse than the prior-year quarter. Net margin was 0.8%, 180 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.42 billion. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $5.91 billion. The average EPS estimate is $0.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 165 members out of 187 rating the stock outperform, and 22 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 $8.15.

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