Celestica Soars 10% on Strong Q1 Earnings

Celestica's share price surged to its highest level since February 2025 today, with an intraday gain of 4.30%.

The strategy of buying CLS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This result indicates the strategy captured some short-term volatility while missing out on longer-term gains.

Celestica's recent stock price increase is primarily attributed to its strong first-quarter 2025 financial results, which exceeded expectations. The company reported a 20% year-over-year revenue growth, reaching US$2.7 billion, and an improved non-GAAP adjusted earnings per share of US$1.20. Significant growth in the Connectivity & Cloud Solutions (CCS) segment and a 5% increase in the Advanced Technology Solutions (ATS) segment contributed to this success. Additionally, Celestica raised its full-year revenue and earnings guidance, signaling confidence in its future performance. The company also repurchased 600,000 shares, suggesting management views the stock as undervalued. These factors collectively bolstered investor confidence, leading to the stock's 10% jump.