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Will Top-Line Growth Boost Celestica's (CLS) Q4 Earnings?
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Celestica, Inc. (CLS - Free Report) is set to report fourth-quarter 2023 results on Jan 29, after the closing bell. In the last reported quarter, the company beat the Zacks Consensus Estimate of 61 cents and delivered a trailing four-quarter earnings surprise of 7.77%, on average.
The company is expected to record a top-line expansion year over year, backed by healthy demand for its manufacturing technology and service solutions in the computer and communication sectors. Management’s focus on product development in accordance with the evolving market trends is a positive factor.
Factors at Play
During the quarter, Celestica unveiled the DS5000 high-performance 800 GbE switch to address the evolving data center networking demands of its cloud and enterprise customers. The solution efficiently supports AI workloads and is optimized for big data analytics, high-performance computing, hyperscale data centers and cloud computing requirements.
Celestica also collaborated with Broadcom in this venture, leveraging the Broadcom StrataXGS Tomahawk 5 Ethernet switch chip. The solution features an industry-leading 64 ports of 800G per slot, achieving an impressive speed of 51.2 Tbps for high-performance networking. Notably, this power-efficient solution consumes 75% less energy compared to the previous generation of 400G switches, making it a sustainable choice for advanced data center applications.
The Open Compute Project foundation has underscored the significance of 800G solutions in fostering innovations and supporting the open networking ecosystem. These developments have strengthened its Hardware Platform Solutions portfolio and are likely to have a positive impact on the company’s fourth-quarter results.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $2,077 million, which indicates growth from the year-ago quarter’s reported figure of $2,043 million. The consensus estimate for adjusted earnings per share stands at 68 cents, up from 56 cents reported a year ago.
Earnings Whispers
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 chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 68 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Celestica currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Feb 28.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Image: Bigstock
Will Top-Line Growth Boost Celestica's (CLS) Q4 Earnings?
Celestica, Inc. (CLS - Free Report) is set to report fourth-quarter 2023 results on Jan 29, after the closing bell. In the last reported quarter, the company beat the Zacks Consensus Estimate of 61 cents and delivered a trailing four-quarter earnings surprise of 7.77%, on average.
The company is expected to record a top-line expansion year over year, backed by healthy demand for its manufacturing technology and service solutions in the computer and communication sectors. Management’s focus on product development in accordance with the evolving market trends is a positive factor.
Factors at Play
During the quarter, Celestica unveiled the DS5000 high-performance 800 GbE switch to address the evolving data center networking demands of its cloud and enterprise customers. The solution efficiently supports AI workloads and is optimized for big data analytics, high-performance computing, hyperscale data centers and cloud computing requirements.
Celestica also collaborated with Broadcom in this venture, leveraging the Broadcom StrataXGS Tomahawk 5 Ethernet switch chip. The solution features an industry-leading 64 ports of 800G per slot, achieving an impressive speed of 51.2 Tbps for high-performance networking. Notably, this power-efficient solution consumes 75% less energy compared to the previous generation of 400G switches, making it a sustainable choice for advanced data center applications.
The Open Compute Project foundation has underscored the significance of 800G solutions in fostering innovations and supporting the open networking ecosystem. These developments have strengthened its Hardware Platform Solutions portfolio and are likely to have a positive impact on the company’s fourth-quarter results.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $2,077 million, which indicates growth from the year-ago quarter’s reported figure of $2,043 million. The consensus estimate for adjusted earnings per share stands at 68 cents, up from 56 cents reported a year ago.
Earnings Whispers
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 chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 68 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Celestica, Inc. Price and EPS Surprise
Celestica, Inc. price-eps-surprise | Celestica, Inc. Quote
Zacks Rank: Celestica currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +3.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Feb 28.
The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +1.46% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.