Celestica Shares Rally As Q1 EPS Tops Estimates

Celestica (CLS) this morning posted Q1 results consistent with previous guidance, as EPS topped Street expectations.

The contract electronics manufacturer posted revenue of $1.469 billion, down 20% from $1.836 billion a year ago, and below the Street at $1.51 billion. But adjusted EPS of 13 cents a share, while down from 15 cents a year ago, was above the Street at 9 cents. Gross margin improved to 7.6% from 6.3% a year ago; operating margin moved up to 2.9%, from 2.7%.

The company’s guidance for the quarter had been for revenue of $1.4 billion to $1.6 billion and EPS of 7-13 cents a share.

For the second quarter, Celestica sees revenue of $1.3 billion to $1.45 billion, with adjusted EPS of 7-13 cents; the Street has been looking for $1.49 billion and 9 cents.

CLS today is up 47 cents, or 10.1%, to $5.13.