Celestica: Expect Another Beat-And-Raise

Celestica's revenue growth is expected to accelerate from 55.55% to 57.24% year-over-year through FY26, supported by the 1.6T networking production ramp. Analysts have issued numerous upward revisions for EPS and revenue, reinforcing confidence ahead of the July 28 earnings report. Celestica has a strong track record of beating EPS estimates for eight consecutive quarters and revenue for seven of the last eight, suggesting expectations of another quarterly beat are likely. While the latest quarter showed a narrowing execution cushion with a 3.84% EPS beat and a 0.02% revenue miss, investors will be focused on whether management raises Q3 and Q4 guidance beyond consensus estimates of $3.26 EPS and $6.21 billion in revenue.

The fundamentals for Celestica (CLS) remain strong heading into earnings. The earnings estimates indicate growing top and bottom lines, supported by strong upward estimate revisions and a consistent history of positive earnings surprises.