HomeMost PopularInvestingCelestica (CLS) Set to Report Q3 Earnings: Insights for Investors

Celestica (CLS) Set to Report Q3 Earnings: Insights for Investors

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Celestica (CLS) is gearing up to announce its third-quarter 2023 results on Oct 26. With revenues estimated to be between $1.90 billion and $2.05 billion, the company is expecting a 3.7% growth from the year-ago quarter. Analysts are anticipating earnings of 61 cents per share, signifying a rise of 17.3% from the prior-year quarter’s reported figure.

Factors Driving Celestica’s Performance

Celestica is likely to have gained from the strength in its Advanced Technology Solutions (ATS) segment, with the ATS end market showing solid momentum. The company’s industrial, HealthTech, and Aerospace and Defense businesses are driving growth in this segment. In addition, the enterprise end market, supported by the demand for proprietary computers from hyperscale customers, has been a positive factor.

The growth of data center interconnects and increase in AI and data center traffic have also benefited Celestica, as the company continues to strengthen its position among enterprise communication customers. However, the communications end market faced challenges due to strong competition and lower demand from certain networking programs. Softness in this market has been a major headwind for the company.

In addition, Celestica’s Hardware Platform Solutions (HPS) segment experienced a negative impact from demand moderation and increasing challenges in the capital equipment market during the quarter under review.

What the Model Says

According to our model, which combines the Earnings ESP and the Zacks Rank, Celestica is not likely to beat earnings estimates this time around. The company currently has an Earnings ESP of 0.00% and a Zacks Rank #3. Earnings ESP and a Zacks Rank of 1, 2, or 3 increase the odds of an earnings beat.

Other Companies to Consider

If you’re looking for potential investments in the same space, you may want to consider the following companies:

  • GoDaddy (GDDY): Earnings ESP of +14.09% and a Zacks Rank #1
  • BILL Holdings (BILL): Earnings ESP of +4.42% and a Zacks Rank #3
  • Carrier Global (CARR): Earnings ESP of +4.16% and a Zacks Rank #3

These companies have the potential to beat earnings estimates in their upcoming quarterly results.

Conclusion

The upcoming earnings announcement from Celestica (CLS) presents an opportunity for investors to gain insights into the company’s performance. Despite facing challenges in certain end markets, the company continues to benefit from growth in the ATS segment and momentum in the enterprise communication market. While the earnings outlook may not be as promising as expected, investors can consider other potential investment opportunities in the same industry.

Keep an eye on the Zacks Earnings Calendar for upcoming earnings announcements from various companies.

Disclaimer: The views and opinions expressed herein are solely the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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