As of the most recent check, Celestica Inc. (NYSE: CLS) share price jumped 13.28% to $113.84 during the pre-market session today. The surge followed the release of the company’s fourth-quarter earnings report, which highlighted exceptional financial success and great fiscal year 2024 results.
Better Performance and Improved Outlook
Celestica’s fourth-quarter revenues of $2.55 billion represented a 19% increase over the prior year. Additionally, the company’s quarterly non-GAAP adjusted EPS of $1.11 was its highest ever. Due to its outstanding success, Celestica has increased its financial forecasts for 2025.
The company’s full-year revenue projection has been raised from $10.4 billion to $10.7 billion. Additionally, it has increased its non-GAAP adjusted EPS expectation from $4.42 to $4.75. The increased prediction is primarily driven by growing demand within its Connectivity & Cloud Solutions (CCS) sector, which is continuing showing strong momentum.
Supporting Indicators
Market indicators further support Celestica’s positive trajectory. On the ST screener, CLS holds a score of 54, with a profit margin exceeding 4%. Investors seeking industry comparisons can explore a compiled list of peer stocks in the Hardware, Equipment, and Parts sector with stronger ST scores and profit margins.
Expanding AI and Data Center Initiatives
Celestica remains optimistic about sustained growth in the data center hardware market. Recent customer forecasts and new artificial intelligence (AI) program awards over the past 90 days reinforce the company’s belief that demand will extend into 2026.
Notably, Celestica secured a 1.6 Terabyte switching program contract with a second Hyperscaler client. Under its Hardware Platform Solutions (HPS) initiative, the company will design and manufacture an AI-optimized networking rack featuring advanced system-level liquid cooling technology, with production slated for 2026.
Celestica Entered A New Collaboration
Additionally, Celestica announced a new HPS program collaboration with a leading Digital Native Company. The initiative involves delivering a fully integrated, AI-optimized rack system, leveraging proprietary R&D investments in AI/ML servers, high-capacity switches, and advanced cooling technologies. Production for this program is expected to commence in late 2026.