Can CLS maintain its earnings momentum in 2025?
3/29/2025 03:22pm
**Celestica (CLS) is poised to maintain its earnings momentum in 2025**, as evidenced by several key indicators:
1. **Projected Earnings Growth**: Celestica's earnings per share (EPS) are projected to be $1.10 for the current quarter, reflecting a 27.91% increase from the same quarter last year. This indicates a strong earnings momentum that the company is likely to sustain in 2025.
2. **Revenue Projection**: The consensus estimate for revenue in 2025 is $2.55 billion, which represents a 15.34% rise from the equivalent quarter last year. This substantial increase in revenue, coupled with the earnings growth, suggests a strong business performance that could continue into 2025.
3. **Analyst Optimism**: Analysts are optimistic about Celestica's future, as reflected by the recent revisions to earnings estimates. The Zacks Consensus EPS estimate for the fiscal year 2025 has changed positively, indicating analysts' confidence in the company's business health and profitability. This optimism is further supported by the Zacks Rank, which considers these estimated changes and delivers an operational rating system, suggesting that Celestica's stock has the potential for outperformance.
4. **Long-Term Growth Potential**: Celestica's strategic positioning in growth industries such as artificial intelligence, energy transition, and aerospace defense is likely to contribute to sustained earnings momentum. The company's ability to support key growth industries and its historical revenue growth rates suggest a strong business model that can continue to deliver results in 2025 and beyond.
5. **Market Performance and Corrections**: Despite some recent market fluctuations, Celestica's stock has shown resilience and has outperformed certain market indices. The recent correction in the stock price may present a buying opportunity, as suggested by some analysts, which could lead to increased investor confidence and support the company's earnings momentum.
In conclusion, the combination of projected earnings growth, revenue projections, analyst optimism, long-term growth potential, and market performance indicators suggest that Celestica is likely to maintain its earnings momentum in 2025.