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Will Growth in the CCS Segment Boost Celestica's Q4 Earnings?
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Key Takeaways
Celestica plans Q4 results on Jan. 28, with CCS revenue expected to rise to $2.66B from $1.73B a year ago.
CLS launched SD6300 storage and DS6000/DS6001 switches, doubling capacity for AI/ML data center workloads.
CLS sees strong hyperscaler demand for 800G switches, offsetting some weakness in the enterprise market.
Celestica, Inc. (CLS - Free Report) is scheduled to report fourth-quarter 2025 earnings on Jan. 28. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Connectivity & Cloud Solutions segment owing to healthy demand in the communications end market.
Factors at Play?
During the quarter, Celestica introduced a leading-edge storage platform, the SD6300 ultra-dense storage expansion system, to cater to the exponential AI data growth across traditional enterprise and hyperscale data centers. With a compact footprint of only 1125 mm (including cable management assembly), the SD6300 maximizes utilization of existing data center floor space as it can be accommodated within standard 1200 mm racks.
In the to be reported quarter, Celestica introduced two new 1.6TbE data center switches, the DS6000 and DS6001, to support high-bandwidth, AI/ML data center applications. While the DS6000 is a 3RU, 64-port x 1.6TbE data center switch for traditional air-cooled data center installations, the DS6001 is a 2OU, 64-port x 1.6TbE switch offering a hybrid cooled solution based on the 21-inch OCP ORv3 rack. Together, the switches double the switching capacity of Celestica’s current offerings. Such innovative product launches are expected to have a favorable impact on fourth-quarter results.
Celestica has gained solid market traction in the fast-growing AI data center market. Strong demand for its 800G switches among hyperscalers is expected to drive growth in the communications end market. Despite some weakness in the Enterprise end market, healthy traction in the AI/ML compute business will likely drive growth.
Overall Expectations
The Zacks Consensus Estimate for CCS revenues is pegged at $2.66 billion, indicating a growth from $1.73 billion a year ago. Net income is projected at $218.5 million.
The Zacks Consensus Estimate for total revenue is pegged at $3.45 billion, indicating 35.46% year over year growth. The consensus mark for earnings is currently pegged at $1.73 per share, indicating growth from $1.11 in the year-earlier quarter.
Our proven model does not conclusively predict an earnings beat for Celestica for the fourth quarter. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
Corning Incorporated (GLW - Free Report) is set to release quarterly numbers on Jan 28. It has an Earnings ESP of +1.72% and sports a Zacks Rank #2.
The Earnings ESP for Amphenol Corporation (APH - Free Report) is +3.78% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jan 28.
The Earnings ESP for SAP (SAP - Free Report) is +0.57% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jan 29.
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Will Growth in the CCS Segment Boost Celestica's Q4 Earnings?
Key Takeaways
Celestica, Inc. (CLS - Free Report) is scheduled to report fourth-quarter 2025 earnings on Jan. 28. In the to-be-reported quarter, the company is likely to have recorded higher revenues from the Connectivity & Cloud Solutions segment owing to healthy demand in the communications end market.
Factors at Play?
During the quarter, Celestica introduced a leading-edge storage platform, the SD6300 ultra-dense storage expansion system, to cater to the exponential AI data growth across traditional enterprise and hyperscale data centers. With a compact footprint of only 1125 mm (including cable management assembly), the SD6300 maximizes utilization of existing data center floor space as it can be accommodated within standard 1200 mm racks.
In the to be reported quarter, Celestica introduced two new 1.6TbE data center switches, the DS6000 and DS6001, to support high-bandwidth, AI/ML data center applications. While the DS6000 is a 3RU, 64-port x 1.6TbE data center switch for traditional air-cooled data center installations, the DS6001 is a 2OU, 64-port x 1.6TbE switch offering a hybrid cooled solution based on the 21-inch OCP ORv3 rack. Together, the switches double the switching capacity of Celestica’s current offerings. Such innovative product launches are expected to have a favorable impact on fourth-quarter results.
Celestica has gained solid market traction in the fast-growing AI data center market. Strong demand for its 800G switches among hyperscalers is expected to drive growth in the communications end market. Despite some weakness in the Enterprise end market, healthy traction in the AI/ML compute business will likely drive growth.
Overall Expectations
The Zacks Consensus Estimate for CCS revenues is pegged at $2.66 billion, indicating a growth from $1.73 billion a year ago. Net income is projected at $218.5 million.
The Zacks Consensus Estimate for total revenue is pegged at $3.45 billion, indicating 35.46% year over year growth. The consensus mark for earnings is currently pegged at $1.73 per share, indicating growth from $1.11 in the year-earlier quarter.
Celestica, Inc. Price and EPS Surprise
Celestica, Inc. price-eps-surprise | Celestica, Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Celestica for the fourth quarter. 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.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Celestica currently has an ESP of 0.00% with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
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:
Corning Incorporated (GLW - Free Report) is set to release quarterly numbers on Jan 28. It has an Earnings ESP of +1.72% and sports a Zacks Rank #2.
The Earnings ESP for Amphenol Corporation (APH - Free Report) is +3.78% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jan 28.
The Earnings ESP for SAP (SAP - Free Report) is +0.57% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Jan 29.