CLS-T<\/a>) continue their strong uptrend, now in its third year. The stock had traded in the $5 to $15 range from 2005 to the spring of 2023. Then it suddenly took off, posting gains of 154 per cent in 2023 and 242 per cent in 2024. So far this year, it\u2019s up about 66 per cent.<\/p>\nI added Celestica to my Internet Wealth Builder recommended list in November 2023 at $38.46. At that point, the p\/e ratio was a very reasonable 16.72. The shares closed Friday at $219.79, up 471 per cent from our original recommendation. The p\/e is now at 44.86, which is high but not outlandish for a tech stock (Nvidia is trading at 55 times earnings).<\/p>\n
Here\u2019s the latest update on Celestica.<\/p>\n
Celestica (TSX, NYSE: CLS)<\/p>\n
Originally recommended on Nov. 20\/23 at C$38.46, US$28.05. Closed Friday at C$219.79, US$160.12.<\/p>\n
Background: Toronto-based Celestica was originally part of IBM. In 1996, it was sold to Onyx Corp. It began trading publicly in 1998 with the sale of 20.6 million shares at US$17.50. The company employs 26,000 people. <\/p>\n
Celestica has two operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). <\/p>\n
The ATS segment consists of its Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses. The CCS segment consists of the company\u2019s Communications and Enterprise (servers and storage) end markets. <\/p>\n
Performance: The share price took a dive in January and plunged again in April in the wake of the \u201cLiberation Day\u201d tariff announcements. However, it recovered quickly and recently hit a new high of $224.36. <\/p>\n
Recent developments: First quarter results continued to show strong growth in revenue and earnings. Revenue for the three months to March 31 was $2.65 billion, up 20 per cent from the same period in 2024. Adjusted earnings per share came in at $1.20 compared to $0.83 the year before. Note that the company reports in U.S. dollars.<\/p>\n
CEO Rob Mionis said both figures surpassed the upper end of the company\u2019s guidance range. \u201cThis strong performance was further highlighted by our highest ever adjusted operating margin of 7.1 per cent,\u201d he added.<\/p>\n
The first quarter results and a strengthening demand have resulted in new guidance for the full 2025 fiscal year. Celestica now expects revenue to reach $10.85 billion, an increase from the prior forecast of $10.7 billion. Adjusted earnings per share are expected to be $5.00, up from the previous guidance of $4.75.<\/p>\n
Second quarter results will be released on July 29. <\/p>\n
Dividend and buybacks: The stock does not pay a dividend, but the company spent $75 million in the quarter to buy back 600,000 shares. <\/p>\n
Outlook: The strong first quarter results and the improved revenue and profit guidance are encouraging. <\/p>\n
Conclusion: I\u2019ve advised our readers to take half profits on the stock. New investors may want to watch for dips, preferably below $210, to take an initial position. <\/p>\n
Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.<\/p>\n","protected":false},"excerpt":{"rendered":"It has been a mediocre year for Canadian tech stocks. The S&P\/TSX Information Technology index is ahead only…\n","protected":false},"author":2,"featured_media":13327,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[1399,1387,1400,390,1377,1401,84,626,1376,1392,1393,1389,1378,1375,1294,1398,1397,1391,1385,1412,1379,1380,80,1388,655,1382,1402,467,1383,1407,1408,1410,1405,1409,1403,1406,1381,1395,1396,229,1394,1404,1386,86,387,1390,56,54,55,1384,231,1411],"class_list":["post-13326","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-markets","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/13326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=13326"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/13326\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/13327"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=13326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=13326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=13326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}