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<US> Canada AI Infrastructure Stock Celestica (CLS.US) 1Q Net Profit Beats; Raises FY Revenue and Net Profit Guidance; Shares -8% After Hours
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Celestica (CLS.US), a Canada-based electronics manufacturing and supply chain solutions provider engaged in AI infrastructure, announced its results for the first quarter ended end-March 2026. Revenue increased 52.8% YoY to USD4.047 billion, slightly above market expectations by less than 1%. Net profit rose 1.46x YoY to USD212.3 million. GAAP EPS was USD1.83, compared with USD0.74 in the same period last year. Non-GAAP adjusted EPS was USD2.16, above the market consensus of USD2.08, versus USD1.2 a year earlier. Non-GAAP adjusted operating margin for the quarter reached 8%, compared with 7.1% in the same period last year. By segment, revenue from the highlighted Connectivity & Cloud Solutions (CCS) business surged 76% YoY to USD3.24 billion, with a margin of 8.6%. Hardware Platform Solutions (HPS) revenue was approximately USD1.7 billion, up 63% YoY. Meanwhile, revenue from Advanced Technology Solutions (ATS), covering aerospace & defense, healthcare and industrial technologies, was USD810 million, flat YoY. President and Chief Executive Officer Rob Mionis said first-quarter performance was strong, with adjusted operating margin reaching a milestone of 8%. He noted that growth from the CCS customer base is accelerating, while margins in both operating segments improved. On the back of this momentum, the company raised its FY2026 revenue guidance to USD19 billion, up from the previous USD17 billion and above the market expectation of USD17.24 billion. It also lifted FY2026 non-GAAP adjusted EPS guidance to USD10.15 from USD8.75, compared with the consensus of USD8.94. FY2026 non-GAAP adjusted operating margin guidance was increased to 8.1% from 7.8%. The company maintained its FY2026 non-GAAP free cash flow guidance at USD500 million. Looking ahead, the company expects revenue in 2026 to increase by more than USD6.5 billion. Benefiting from improved visibility and new project wins, it now anticipates revenue growth in 2027 will far exceed this level. For the second quarter, revenue guidance ranges from USD4.15 billion to USD4.45 billion, above the market expectation of USD4.05 billion. Non-GAAP adjusted EPS is guided at USD2.14 to USD2.34, versus the consensus of USD2.1. The company recently also announced it secured a co-packaged optics (CPO) Ethernet switch design and manufacturing program from a hyperscale customer, with mass production expected to begin in 2027. The stock plunged 8.3% in after-hours trading to USD387.37.(da/j) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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