Will CLS's earnings growth accelerate in 2025?

**Celestica's earnings growth is poised to accelerate in 2025.** Here's the analysis to support this conclusion: 1. **Strong Financial Performance and Growth Prospects**: Celestica has demonstrated robust financial performance, with revenue growth of 21% in 2024. The company's Q4 2024 results showed strong momentum, especially in its Connectivity & Cloud Solutions (CCS) segment. For FY2025, consensus estimates project continued growth in revenue and earnings per share (EPS), with revenue expected at $10.6 billion and adjusted EPS at $4.47. 2. **Accelerating Earnings Growth**: Celestica's earnings growth rate for 2024 was 60.71%. Earnings estimates for 2025 have jumped 32.6% to $4.43, indicating a significant acceleration in earnings growth. 3. **Positive Analyst Ratings and Price Target**: The consensus rating for Celestica is "Buy" with an average current price target of $138.29, suggesting that analysts are optimistic about the company's future performance. The stock has been upgraded to a "Strong Buy" with a resilient management team navigating the company deeper into the AI connectivity space while efficiently managing shareholder returns. 4. **Strategic Positioning in AI and Networking**: Celestica's strategic positioning in the AI hardware market and its strong relationships with hyperscale customers have propelled its stock to new heights. The company's innovative products, such as the high-performance 800G network switches and storage solutions, are integral to AI applications. The demand for AI/ML compute and networking products from hyperscale customers is expected to continue, which will likely drive Celestica's growth. 5. **Upcoming Catalysts and Opportunities**: Celestica has secured significant share gains in the Ethernet Data Center Switch market and has raised its revenue targets for 2025 to $10.7 billion. The company's advanced technology solutions segment is expected to remain flat versus 2024, but the connectivity and cloud services segment is anticipated to grow significantly. These growth drivers are set to fuel Celestica's earnings acceleration in 2025. In conclusion, Celestica's strong financial performance, accelerating earnings growth, positive analyst ratings, strategic positioning in the AI market, and upcoming catalysts strongly suggest that the company's earnings growth will accelerate in 2025.