Celestica (NYSE:CLS) Trading Up 9.6% Following Strong Earnings

Celestica, Inc. (NYSE:CLS) (TSE:CLS) shares rose 9.6% during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $350.91 and last traded at $348.6590. 7,725,975 shares were traded during mid-day trading, an increase of 225% from the average daily volume of 2,379,524 shares. The stock had previously closed at $318.24.

The technology company reported $2.54 earnings per share for the quarter, beating the consensus estimate of $2.29 by $0.25. The firm had revenue of $4.68 billion during the quarter, compared to the consensus estimate of $4.30 billion. Celestica had a net margin of 6.95% and a return on equity of 36.91%. The company’s revenue was up 62.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.39 earnings per share. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS.

Celestica News Roundup

Here are the key news stories impacting Celestica this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: Revenue increased approximately 62% year over year to about $4.7 billion, while adjusted EPS reached $2.54 versus the $2.29 consensus estimate. Revenue and adjusted earnings also came in above the high end of management’s own guidance. Celestica Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management sharply raised its 2026 outlook: Celestica now expects approximately $20.5 billion in annual revenue and $11.30 in EPS, above consensus forecasts of roughly $19.2 billion and $10.13, respectively. Third-quarter revenue and EPS guidance also exceeded analyst estimates. CLS Q2 Earnings Beat Estimates on Strong CCS Demand, Outlook Raised
• Positive Sentiment: AI-related demand is supporting future growth: The Connectivity & Cloud Solutions segment grew 84% year over year, with hyperscaler customers expected to enter mass production during 2026. Management also indicated that growth could accelerate beyond 65% in 2027, improving visibility into future results. Celestica Q2: 2 Reasons It’s Worth Watching, But Not Buying Yet
• Neutral Sentiment: Unusually active call-option trading and analyst commentary describing Celestica as underpriced reinforced bullish momentum, but these signals do not directly change the company’s fundamentals. Celestica: Massively Underpriced
• Negative Sentiment: Some investors remain cautious because CLS has already delivered substantial gains and trades at a premium valuation, leaving the stock exposed to profit-taking if AI infrastructure spending or execution slows.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Royal Bank Of Canada increased their price target on Celestica from $400.00 to $440.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 29th. Stifel Nicolaus set a $445.00 price objective on Celestica in a report on Tuesday, April 28th. TD Cowen raised shares of Celestica from a “hold” rating to a “buy” rating and upped their price objective for the stock from $350.00 to $430.00 in a research note on Wednesday, April 29th. Zacks Research upgraded shares of Celestica from a “hold” rating to a “strong-buy” rating in a report on Friday, June 26th. Finally, Canadian Imperial Bank of Commerce reiterated an “outperform” rating and set a $480.00 target price on shares of Celestica in a report on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $427.42.

Insider Buying and Selling at Celestica

In other Celestica news, CFO Mandeep Chawla sold 17,000 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $399.65, for a total transaction of $6,794,050.00. Following the sale, the chief financial officer owned 82,444 shares of the company’s stock, valued at approximately $32,948,744.60. This trade represents a 17.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael Max Wilson sold 4,168 shares of the business’s stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $333.31, for a total value of $1,389,236.08. Following the completion of the transaction, the director directly owned 24,718 shares of the company’s stock, valued at approximately $8,238,756.58. The trade was a 14.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 161,168 shares of company stock valued at $63,190,485. 1.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Celestica

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of Celestica during the fourth quarter valued at about $28,000. Ascentis Independent Advisors bought a new position in shares of Celestica during the 1st quarter worth approximately $29,000. Swiss RE Ltd. purchased a new stake in Celestica during the fourth quarter valued at approximately $29,000. Cullen Frost Bankers Inc. purchased a new stake in Celestica during the fourth quarter valued at approximately $30,000. Finally, Sittner & Nelson LLC acquired a new stake in Celestica in the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 67.38% of the company’s stock.

Celestica Trading Up 9.6%

The company’s 50 day simple moving average is $361.64 and its two-hundred day simple moving average is $332.61. The company has a quick ratio of 0.73, a current ratio of 1.26 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $40.09 billion, a price-to-earnings ratio of 42.16, a P/E/G ratio of 0.71 and a beta of 2.05.

About Celestica

Celestica Inc is a multinational electronics manufacturing services (EMS) company that provides design, engineering, manufacturing and supply chain solutions to original equipment manufacturers across a range of industries. Headquartered in Toronto, Ontario, Canada, Celestica works with customers to develop and produce complex electronic and electro-mechanical products, integrating activities from product design and prototyping through high-volume assembly, testing and final system integration.

The company’s service offering typically includes product engineering and design support, printed circuit board assembly, box-build and systems assembly, automated test and inspection, aftermarket repair and refurbishment, and end-to-end supply chain and logistics management.