Celestica Inc (CLS.TO) saw its stock surge over 6% in pre-market trading on Tuesday, driven by an upbeat earnings outlook for the fourth quarter of 2024. The electronics manufacturing services company is expected to report robust financial results, fueled by strong demand across several key markets.
According to analysts' estimates, Celestica is projected to post revenue of $2.532 billion for Q4 2024, an 18.3% year-over-year increase. The company's earnings per share are anticipated to reach $1.05, continuing its streak of surpassing earnings expectations over the past four quarters. This anticipated strong performance is primarily attributed to Celestica's growing presence in the Connectivity & Cloud Solutions segment, driven by rising demand for AI/ML compute products and high-speed networking solutions.
The company's recent launch of the DS4100 800G data center switch is also expected to bolster its portfolio and cater to the high-bandwidth demands of modern data centers. With a favorable earnings outlook and promising growth prospects, Celestica's stock has received a boost in pre-market trading, reflecting investor confidence in the company's trajectory.
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