During the extended trading session, the valuation of Celestica Inc. (NYSE: CLS) shares experienced a notable surge, marking an impressive uptick of 6.73% to reach $47.07. That contrasted with its performance in the regular trading session, where Celestica stock saw a modest increase of only 0.78%, settling at $44.10. The announcement of CLS’s financial results was what caused the stock value to increase.
Celestica (CLS) released Q1 2024 financial data, which cover the quarter that ends on March 31, 2024. The business announced a strong start to the year, with sales rising by 20% in Q1 2024 over the same time the previous year and an ongoing increase in operating profit.
Its performance was impressive as indicated by sales and adjusted EPS exceeding guidance ranges upper bounds. Celestica divides its business into Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS), which are its two operational and reportable areas.
The Aerospace and Defense (A&D), Industrial, HealthTech, and Capital Equipment sectors are among the end markets covered by the ATS category. Conversely, the end markets for communications and enterprise (servers and storage) are included in the CCS category.
Celestica reported $2.21 billion in sales for the first quarter of 2024, up 20% from $1.84 billion in the same period the previous year. The company also saw an improvement in operating profit to 6.2%. The revenue from the ATS segment decreased by 3%, while the revenue from the CCS segment increased by 38%, with a segment margin of 7.0%.
Celestica’s adjusted profits per share (EPS) increased significantly from $0.47 to $0.86 in the previous year. The company’s decision to raise its forecast is supported by the strong demand it continues to see from a number of significant clients.
In addition, Celestica signed a formal contract in April 2024 to pay $36 million to buy NCS Global Services LLC, a US-based company that specializes in IT infrastructure and asset management. If all customary closing conditions are met, the deal is expected to close in May 2024 or sooner.
