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

Celestica, Inc. (NYSE:CLS) (TSE:CLS)’s stock price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $246.65, but opened at $264.31. Celestica shares last traded at $271.4010, with a volume of 2,335,628 shares traded.

The technology company reported $3.30 earnings per share for the quarter, topping analysts’ consensus estimates of $2.93 by $0.37. Celestica had a return on equity of 39.96% and a net margin of 7.16%. The firm had revenue of $5.74 billion during the quarter, compared to analysts’ expectations of $5.39 billion.

Key Headlines Impacting Celestica

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Celestica reported third-quarter adjusted EPS of $3.30, exceeding the $2.93 consensus estimate, while revenue reached $5.74 billion versus expectations of $5.39 billion. The results represented earnings and revenue surprises of approximately 9.3% and 6.0%, respectively. Celestica Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its full-year earnings and revenue outlook after Q3 results came in above the high end of its guidance ranges. The company also projected accelerating revenue growth and expanding non-GAAP adjusted operating margins in 2027. Celestica Stock Pops on Strong Q3 Earnings and Raised Guidance
• Positive Sentiment: Investor enthusiasm is being driven by strong demand for AI infrastructure and data-center equipment. Reports highlighted an AI-related “supercycle,” stronger customer demand extending into 2028, and a reported outlook approaching $40 billion in 2027 sales. Celestica AI Infrastructure Demand and 2027 Sales Outlook
• Neutral Sentiment: Celestica became one of the market’s closely watched movers following the earnings release, with coverage emphasizing both the AI growth opportunity and the unusually strong earnings reaction. Biggest Stock Movers Tuesday
• Negative Sentiment: Despite the strong fundamentals, the shares have decreased from their earlier post-earnings levels and are trading near the one-year low. The supplied reports identify no new operational setback, so the weakness may reflect profit-taking, valuation concerns, or high expectations already embedded in the stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on CLS shares. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Celestica in a research report on Thursday, October 15th. FBN Securities assumed coverage on shares of Celestica in a research report on Tuesday, September 15th. They set an “outperform” rating and a $375.00 target price for the company. Canadian Imperial Bank of Commerce raised their target price on shares of Celestica from $480.00 to $500.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. RBC Dominion Securities set a $450.00 price target on shares of Celestica and gave the stock an “outperform” rating in a report on Friday. Finally, TD set a $430.00 price target on Celestica and gave the stock a “buy” rating in a research report on Wednesday, September 16th. Twenty-four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Celestica presently has an average rating of “Moderate Buy” and a consensus target price of $448.30.

Insider Transactions at Celestica

In other news, CEO Robert Mionis sold 23,396 shares of the company’s stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $364.22, for a total transaction of $8,521,291.12. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, President Todd Cooper sold 20,118 shares of the company’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $360.00, for a total transaction of $7,242,480.00. Following the transaction, the president owned 73,252 shares in the company, valued at $26,370,720. The trade was a 21.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 243,067 shares of company stock worth $89,200,967. Insiders own 1.10% of the company’s stock.

Hedge Funds Weigh In On Celestica

Several hedge funds have recently made changes to their positions in the company. Legacy Wealth Managment LLC ID grew its holdings in shares of Celestica by 14.4% during the first quarter. Legacy Wealth Managment LLC ID now owns 223 shares of the technology company’s stock worth $63,000 after buying an additional 28 shares in the last quarter. Capital Planning LLC boosted its position in Celestica by 3.2% during the first quarter. Capital Planning LLC now owns 1,025 shares of the technology company’s stock worth $289,000 after acquiring an additional 32 shares during the last quarter. PCB Capital LLC grew its stake in Celestica by 3.5% in the 1st quarter. PCB Capital LLC now owns 995 shares of the technology company’s stock worth $280,000 after acquiring an additional 34 shares during the period. Riverbend Wealth Management LLC grew its stake in Celestica by 4.8% in the 3rd quarter. Riverbend Wealth Management LLC now owns 745 shares of the technology company’s stock worth $269,000 after acquiring an additional 34 shares during the period. Finally, XML Financial LLC raised its holdings in Celestica by 1.5% in the 2nd quarter. XML Financial LLC now owns 2,640 shares of the technology company’s stock valued at $963,000 after acquiring an additional 40 shares during the last quarter. 67.38% of the stock is owned by institutional investors and hedge funds.

Celestica Price Performance

The company has a market capitalization of $31.28 billion, a price-to-earnings ratio of 28.20 and a beta of 2.01. The company has a fifty day simple moving average of $327.22 and a two-hundred day simple moving average of $331.72. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23.

Celestica Company Profile

Celestica Inc is a global provider of design, manufacturing, and supply chain solutions for original equipment manufacturers and other technology companies. The company helps customers develop, produce, and support complex hardware and integrated systems across their product life cycles.

Its services include product design and engineering, electronics and mechanical manufacturing, systems integration, testing, supply chain management, logistics, and after-market support. Celestica serves markets such as communications, enterprise and cloud computing, aerospace and defense, industrial technology, health technology, and capital equipment.

Headquartered in Toronto, Canada, Celestica operates a global network of manufacturing, engineering, and supply chain facilities serving customers in North America, Europe, and Asia.