Celestica Inc (CLS.TO) saw its stock surge 5.77% in after-hours trading on Monday, following an upbeat earnings preview for the fourth quarter of 2024. The Toronto-based electronics manufacturing services company is expected to report strong financial results, buoyed by robust demand across several key end markets.
According to analysts' estimates, Celestica is likely to post a revenue of $2.532 billion for the quarter ended December 31, 2024, marking an 18.3% year-over-year increase. The company's earnings per share are projected to reach $1.05, continuing its streak of surpassing earnings expectations over the past four quarters.
The anticipated strong performance is primarily driven by Celestica's growing presence in the Connectivity & Cloud Solutions segment, fueled by the rising demand for AI/ML compute products and networking solutions like 400G and 800G switches. Additionally, the company's recent launch of the DS4100 800G data center switch is expected to bolster its portfolio and cater to the high-bandwidth demands of modern data centers.
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