- Celestica (CLS, Financial) experiences a 4.5% drop in share value following Q1 earnings.
- Despite revenue growth, future projections fall short of market expectations.
- Analyst consensus remains optimistic with an "Outperform" rating.
Celestica Inc (NYSE: CLS), a leading global electronics manufacturer, saw its shares decline by 4.5% in after-hours trading after releasing its first-quarter earnings report. Despite a robust 20% revenue increase, reaching $2.65 billion, the company only achieved an adjusted earnings per share of $1.20. As Celestica boosts its 2025 revenue forecast to $10.85 billion, this figure still trails behind market anticipations set at $10.942 billion.
Wall Street Analysts' Insights
According to forecasts from 12 financial experts, the average one-year price target for Celestica Inc (CLS, Financial) is pegged at $124.19. Projections vary, with a high estimate of $157.00 and a low of $95.00, suggesting an upside potential of 34.79% from its current trading price of $92.14. For a more comprehensive analysis, visit the Celestica Inc (CLS) Forecast page.
Brokerage Recommendations
Within the brokerage community, Celestica Inc (CLS, Financial) holds a strong position, with an average recommendation score of 1.9 from 14 brokerage firms. This places the stock in the "Outperform" category. The grading scale ranges from 1 (Strong Buy) to 5 (Sell), indicating positive sentiment towards potential stock performance.
Valuation and Future Prospects
Contrary to optimistic price targets, GuruFocus' proprietary GF Value estimation suggests a cautionary outlook. The GF Value estimate for Celestica Inc (CLS, Financial) is $32.21, pointing to a potential downside of 65.04% from its current price of $92.14. The GF Value incorporates historical trading multiples, past business growth, and projective performance metrics to determine a fair trading value. For further insights, explore the Celestica Inc (CLS) Summary page.
