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Celestica (CLS) to Report Q3 Earnings: What's in Store?
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Celestica (CLS - Free Report) is scheduled to report its third-quarter 2023 results on Oct 26.
For third-quarter 2023, the company expects revenues between $1.90 billion and $2.05 billion. The Zacks Consensus Estimate is pegged at $2 billion, suggesting growth of 3.7% from the year-ago quarter’s reported figure.
Management expects earnings of 56-62 cents per share for the quarter under review. The consensus mark is pegged at 61 cents per share, indicating a rise of 17.3% from the prior-year quarter’s reported figure.
Let’s see how things have shaped up for this announcement.
Celestica’s third-quarter 2023 results are expected to have benefited from strength in Advanced Technology Solutions (ATS) segment.
Moreover, solid momentum in the ATS end market, owing to growing Celestica’s industrial, HealthTech and Aerospace and Defense businesses, is likely to have been a positive.
Strength in the enterprise end market, driven by continued demand in proprietary computers from hyperscale customers, is likely to have been a positive.
The growth of data center interconnects is expected to have benefited Celestica’s momentum among enterprise communication customers. Moreover, growing proliferation of AI and increased data center traffic, is likely to have been a plus..
However, softness in the communications end market, due to strong competition and lower anticipated demand from certain programs in networking, is likely to have been a major headwind.
Further, demand moderation is expected to have negatively impacted the performance of the Hardware Platform Solutions (HPS) segment in the quarter under review.
Increasing challenges in capital equipment market are also expected to get reflected in the upcoming quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Celestica this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.
Celestica currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Carrier Global (CARR - Free Report) has an Earnings ESP of +4.16% and a Zacks Rank #3 at present.
Carrier is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CARR’s earnings is pegged at 78 cents per share, suggesting growth of 11.4% from the prior-year period’s reported figure.
Image: Bigstock
Celestica (CLS) to Report Q3 Earnings: What's in Store?
Celestica (CLS - Free Report) is scheduled to report its third-quarter 2023 results on Oct 26.
For third-quarter 2023, the company expects revenues between $1.90 billion and $2.05 billion. The Zacks Consensus Estimate is pegged at $2 billion, suggesting growth of 3.7% from the year-ago quarter’s reported figure.
Management expects earnings of 56-62 cents per share for the quarter under review. The consensus mark is pegged at 61 cents per share, indicating a rise of 17.3% from the prior-year quarter’s reported figure.
Let’s see how things have shaped up for this announcement.
Celestica, Inc. Price and EPS Surprise
Celestica, Inc. price-eps-surprise | Celestica, Inc. Quote
Factors to Consider
Celestica’s third-quarter 2023 results are expected to have benefited from strength in Advanced Technology Solutions (ATS) segment.
Moreover, solid momentum in the ATS end market, owing to growing Celestica’s industrial, HealthTech and Aerospace and Defense businesses, is likely to have been a positive.
Strength in the enterprise end market, driven by continued demand in proprietary computers from hyperscale customers, is likely to have been a positive.
The growth of data center interconnects is expected to have benefited Celestica’s momentum among enterprise communication customers. Moreover, growing proliferation of AI and increased data center traffic, is likely to have been a plus..
However, softness in the communications end market, due to strong competition and lower anticipated demand from certain programs in networking, is likely to have been a major headwind.
Further, demand moderation is expected to have negatively impacted the performance of the Hardware Platform Solutions (HPS) segment in the quarter under review.
Increasing challenges in capital equipment market are also expected to get reflected in the upcoming quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Celestica this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.
Celestica currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Carrier Global (CARR - Free Report) has an Earnings ESP of +4.16% and a Zacks Rank #3 at present.
Carrier is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CARR’s earnings is pegged at 78 cents per share, suggesting growth of 11.4% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.