- The stock price of Celestica Inc (NYSE: CLS) increased 15.2% today. This is why it happened.
The stock price of Celestica Inc (NYSE: CLS) – a leader in design, manufacturing, and supply chain solutions for the world’s most innovative companies – increased 15.2% today, going from a previous close of $7.46 to $8.60. Investors are responding positively to the company announcing the financial results for the quarter ended June 30, 2021.
These are the Q2 2021 highlights:
— Revenue: $1.42 billion, decreased 5% compared to $1.49 billion for the second quarter of 2020 (Q2 2020)
— Revenue of our non-Cisco business increased 6% compared to Q2 2020.
— Operating margin (non-IFRS): 3.9%, compared to 3.4% for Q2 2020.
— ATS segment revenue: increased 12% compared to Q2 2020; ATS segment margin was 4.1%, compared to 3.1% for Q2 2020.
— CCS segment revenue: decreased 14% compared to Q2 2020; CCS segment margin was 3.7%, compared to 3.6% for Q2 2020
— Non-Cisco CCS revenue increased 2% compared to Q2 2020.
— Lifecycle Solutions portfolio revenue (combined ATS segment and HPS revenue): increased 13% compared to Q2 2020, and represented 61% of total revenue, compared to 52% of total revenue for Q2 2020.
— IFRS earnings per share (EPS): $0.21, compared to $0.10 per share for Q2 2020.
— Adjusted EPS (non-IFRS): $0.30, compared to $0.25 for Q2 2020.
— Adjusted return on invested capital (non-IFRS): 13.7%, compared to 12.9% for Q2 2020.
— Free cash flow (non-IFRS): $31.2 million, compared to $37.9 million for Q2 2020.
— Undrawn $450 million revolver and $467 million in cash/cash equivalents.
— Repurchased and canceled 1.6 million subordinate voting shares for $13.4 million under our normal course issuer bid.
“Celestica’s solid second-quarter results underscore the successful execution of our strategy to reshape our portfolio and build a resilient, diversified business with a strong foundation for growth. Primarily driven by higher Hardware Platform Solutions (HPS) concentration and strong performance from our Capital Equipment business, we achieved Q2 2021 revenue, non-IFRS adjusted EPS and non-IFRS operating margin at, or significantly exceeding, the high end of our Q2 2021 guidance ranges. This represents our sixth straight quarter of year-to-year non-IFRS operating margin improvement as we continue to shift our business mix towards our higher-margin, higher-growth Lifecycle Solutions portfolio. As we look towards the third quarter, our non-IFRS operating margin guidance is 4% (representing the mid-point of our third-quarter revenue and non-IFRS adjusted EPS guidance ranges). If achieved, this would represent the highest non-IFRS operating margin performance for the company in twenty years. Furthermore, we currently expect our fourth quarter non-IFRS operating margin performance to be at similar, or better, levels.”
“I am proud of our global teams’ ability to continue to operate with agility to successfully navigate industry headwinds and deliver innovative solutions intended to enable our customers to achieve their objectives. I am confident that as we ramp new programs, we are well-positioned to build on our momentum and deliver profitable growth in the second half of 2021.”
— Rob Mionis, President and CEO, Celestica
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.