The earnings call highlighted significant growth in the CCS segment and strong financial performance, including record revenues and EPS. However, challenges persist in the ATS segment due to industrial market softness and a key program decision in A&D. Overall, the company demonstrates positive momentum with strategic wins and a solid financial position.

Company Guidance

During the Q3 2024 earnings call, Celestica provided detailed guidance for the fourth quarter and the full year, highlighting several key financial metrics. For Q4 2024, the company anticipates revenues between $2.425 billion and $2.575 billion, representing a growth of 17% at the midpoint. The adjusted earnings per share (EPS) is expected to range from $0.99 to $1.09, marking a 37% improvement at the midpoint. The non-IFRS operating margin is projected to be 6.7%, reflecting a 70 basis point increase year-over-year. The adjusted SG&A expense is forecasted to be between $78 million and $80 million, with an adjusted effective tax rate of approximately 21%. For the full year 2024, Celestica's revised guidance includes revenue of $9.6 billion and an adjusted EPS of $3.85, equating to a 21% and 58% growth, respectively. The non-IFRS operating margin is expected to improve by 90 basis points to 6.5%, and adjusted free cash flow is projected to increase to $275 million, up from the previous outlook of $250 million.

Record-Breaking Revenue and Growth

Celestica achieved third-quarter revenues of $2.5 billion, up 22%, exceeding guidance. Adjusted EPS of $1.04 was the highest in company history, marking a $0.39 increase. Full-year 2024 revenue is expected to reach $9.6 billion, a 21% increase.

Strong Performance in CCS Segment

CCS segment revenues increased 42% year-over-year, driven by hyperscale customer investments in data center infrastructure. The segment's margin was 7.6%, up 140 basis points.

Growth in HPS Networking Solutions

HPS revenues grew by 54%, reaching $761 million. The growth was driven by demand for 400G and 800G networking switches. Celestica secured an initial win for a 1.6 terabyte switching program.

Positive Cash Flow and Financial Position

Generated $75 million of adjusted free cash flow in the third quarter. Year-to-date, adjusted free cash flow was $203 million compared to $110 million last year. Cash balance at quarter-end was $399 million, with $1.1 billion in total liquidity.

Strategic Partnerships and Wins

Announced a strategic relationship with AI player Grok, with programs expected to ramp in early 2025. Secured new AI server programs with the largest hyperscaler customer for ramping in mid-2025.

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Celestica (TSE:CLS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TSE:CLS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 29, 2025	2024 (Q4)	1.46 / -	1.021	―	―	―
Oct 23, 2024	2024 (Q3)	1.29 / 1.44	0.898	60.36% (+0.54)
Jul 24, 2024	2024 (Q2)	1.11 / 1.26	0.726	73.14% (+0.53)
Apr 24, 2024	2024 (Q1)	0.98 / 1.18	0.64	84.22% (+0.54)
Jan 29, 2024	2023 (Q4)	0.91 / 1.02	0.749	36.32% (+0.27)
Oct 25, 2023	2023 (Q3)	0.81 / 0.90	0.708	26.84% (+0.19)
Jul 26, 2023	2023 (Q2)	0.64 / 0.73	0.566	28.27% (+0.16)
Apr 26, 2023	2023 (Q1)	0.62 / 0.64	0.501	27.74% (+0.14)
Jan 25, 2023	2022 (Q4)	0.73 / 0.75	0.559	33.99% (+0.19)
Oct 24, 2022	2022 (Q3)	0.59 / 0.71	0.433	63.51% (+0.27)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TSE:CLS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 23, 2024	C$79.47	C$93.99	+18.27%
Jul 24, 2024	C$73.75	C$70.64	-4.22%
Apr 24, 2024	C$60.42	C$59.12	-2.15%
Jan 29, 2024	C$43.63	C$44.32	+1.58%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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