NEW YORK, July 31, 2015 /PRNewswire/ --
ACI Association has initiated research coverage on Celestica
Inc. (NYSE: CLS). Select highlights from the internally released
reports are being made available to the general public (included
below), with access to the entirety of the research available to
new members.
Today, membership is open to readers on a complementary basis at
the following URL: http://www.aciassociation.com/?c=CLS
Highlights from our CLS Report include:
- Earnings Meet Guidance - On July
23, 2015, Celestica announced its financial results for the
second quarter of 2015. The Company reported Q2 revenues of
$1.42 billion which was above the
mid-point of the Company's guidance range of $1.35 billion to $1.45 billion, driven primarily
by strong demand in the Company's communication, storage and
semiconductor end-markets. The revenues were up 9% sequentially,
whereas they decreased 4% on a Y-o-Y basis. The Company generated
adjusted earnings of 25 cents per
share, thereby surpassing the midpoint of its guidance range by
2 cents. The adjusted EPS remained
unchanged from the prior year quarter.
Segmental Results - The Company's
Communications end market contributed 40% of the total revenue
earned during the quarter. The Communications revenue grew 9% on a
Q-o-Q basis due to strong demand as well as new program ramps.
Celestica's Diversified end markets made up 28% of the Company's
second quarter revenue. Revenue from this segment grew 7%
sequentially on the back of growth in aerospace and defense and
semiconductor. Revenue from the Company's storage end market was
higher than expected and accounted for 19% of revenues of Q2.
Storage revenues grew 17% on a sequential basis due to seasonality
in overall strong demand. Q2 revenues from the server end market,
which represented about 10% of Q2 revenues, were relatively flat
sequentially. Additionally, consumer end market representing 3% of
total Q2 revenue increased 14% on sequential basis.
- Operational Updates -The Company announced that it
entered into an agreement for the sale of its corporate
headquarters and manufacturing operations located in Toronto, Ontario to an entity to be formed by
a consortium of three real estate developers. The transaction, with
an agreed purchase price is approximately CAD137 million, is expected to be completed
within approximately two years. Further, during the reported
quarter, the Company repurchased and cancelled 26.3 million
subordinate voting shares for $350.0
million.
- Outlook- Celestica is projecting revenues to range from
$1.4 billion to $1.5 billion for the
third quarter. The Company expects operating margin of
approximately 3.6% at the mid-point of its revenue guidance. Q3's
adjusted earnings are expected to range from $0.28 to $0.34 per share.
To find out how this influences our rating on Celestica Inc.
read the full report in its entirely here:
http://www.aciassociation.com/?c=CLS
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