Celestica (NYSE:CLS) Shares Gap Up on Better-Than-Expected Earnings

Shares of Celestica, Inc. (NYSE:CLS) (TSE:CLS) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $301.82, but opened at $346.01. Celestica shares last traded at $334.0990, with a volume of 3,182,489 shares changing hands.

The technology company reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.45 by $0.13. The company had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.01 billion. Celestica had a net margin of 6.35% and a return on equity of 31.82%. The firm’s quarterly revenue was up 27.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.04 earnings per share.

Analysts Set New Price Targets

A number of research firms recently commented on CLS. TD Cowen reaffirmed a “hold” rating and issued a $238.00 price target on shares of Celestica in a research note on Friday, October 3rd. CIBC upped their price target on shares of Celestica from $245.00 to $315.00 and gave the stock an “outperform” rating in a report on Monday, October 20th. UBS Group reissued a “neutral” rating and issued a $208.00 price objective (up from $101.00) on shares of Celestica in a research note on Wednesday, July 30th. CICC Research assumed coverage on Celestica in a research note on Tuesday, August 19th. They set an “outperform” rating for the company. Finally, Wall Street Zen raised Celestica from a “hold” rating to a “buy” rating in a report on Saturday, October 4th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $249.36.

Institutional Trading of Celestica

A number of hedge funds have recently made changes to their positions in CLS. Golden State Wealth Management LLC raised its holdings in Celestica by 102.5% in the 2nd quarter. Golden State Wealth Management LLC now owns 164 shares of the technology company’s stock valued at $26,000 after buying an additional 83 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of Celestica by 42.5% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 124 shares of the technology company’s stock valued at $31,000 after acquiring an additional 37 shares during the last quarter. First Horizon Corp bought a new position in shares of Celestica during the third quarter valued at $31,000. ST Germain D J Co. Inc. acquired a new position in shares of Celestica during the second quarter worth $37,000. Finally, Twin Peaks Wealth Advisors LLC bought a new stake in shares of Celestica in the second quarter worth $40,000. 67.38% of the stock is owned by institutional investors and hedge funds.

Celestica Stock Performance

The firm has a market capitalization of $37.59 billion, a P/E ratio of 53.05 and a beta of 1.88. The company has a 50-day moving average of $243.40 and a 200-day moving average of $174.29. The company has a current ratio of 1.44, a quick ratio of 0.86 and a debt-to-equity ratio of 0.48.

About Celestica

Celestica Inc provides supply chain solutions in North America, Europe, and Asia. It operates through two segments: Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services.