Celestica (TSX:CLS) Marks 23% Jump in Revenue Reports in Q2 2024, Updates Annual Outlook

2 min read | July 25, 2024 12:35 AM PDT | By Team Kalkine Media

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Celestica (TSX:CLS) Marks 23% Jump in Revenue Reports in Q2 2024, Updates Annual Outlook — Image source: Lemonsoup14

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Celestica Inc. (TSX:CLS) (NYSE:CLS), a leading provider of design, manufacturing, hardware platform, and supply chain solutions, has announced its financial results for the second quarter of 2024 (Q2 2024). The company reported robust growth and significant improvements across key financial metrics compared to the same period last year.

In Q2 2024, Celestica achieved a revenue of $2.39 billion, marking a 23% increase from the $1.94 billion reported in the second quarter of 2023 (Q2 2023). This growth reflects the company's continued success in expanding its customer base and delivering value-added solutions in a competitive market. The non-IFRS operating margin for the quarter improved to 6.3%, up from 5.5% in Q2 2023, indicating enhanced operational efficiency and profitability.

Adjusted earnings per share (EPS) on a non-IFRS basis also saw a substantial increase, reaching $0.91 compared to $0.55 in the prior-year quarter. This improvement underscores Celestica's ability to leverage its core strengths and strategic initiatives to drive financial performance.

Looking ahead to the third quarter of 2024 (Q3 2024), Celestica anticipates a potential negative impact on net earnings ranging from $0.16 to $0.22 per share on an IFRS basis. This anticipated impact is primarily due to expenses related to employee stock-based compensation, amortization of intangible assets (excluding computer software), and restructuring charges. The company also expects a non-IFRS adjusted effective tax rate of approximately 20%, excluding foreign exchange impacts or unforeseen tax settlements.

Building on its strong Q2 2024 performance, Celestica has updated its annual outlook for 2024. The company now expects full-year revenue to reach $9.45 billion, up from the previous forecast of $9.1 billion. The non-IFRS operating margin is projected to be 6.3%, an increase from the earlier estimate of 6.1%. Additionally, Celestica has raised its forecast for non-IFRS adjusted EPS to $3.62, up from the previous outlook of $3.30.

These revised projections reflect Celestica's confidence in its strategic direction and its ability to capitalize on growth opportunities in the market. The company continues to focus on innovation and operational excellence, positioning itself as a leader in providing comprehensive solutions for the world's most innovative companies.

Celestica's Q2 2024 financial results and updated annual outlook underscore the company's resilience and adaptability in navigating a dynamic business environment. With a strong foundation and a clear vision for the future, Celestica is well-positioned to deliver sustained growth and value to its shareholders.

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