Celestica (NYSE: CLS) stock is falling fast in Tuesday’s trading. The technology company’s share price was down 15.7% as of 2:20 p.m. ET. The S&P 500 was down 0.6% at the same point in the daily session, and the Nasdaq Composite was down 1.1%.
Celestica published its first-quarter results after yesterday’s market close and reported sales and earnings for the period that beat Wall Street’s targets. Despite performance beats in Q1 and seemingly solid forward guidance, the stock is getting hit with a big valuation pullback today.
Image source: Getty Images.
Celestica’s Q1 report arrived with strong results, but that hasn’t been enough for investors.
Celestica (CLS 15.30%) stock is falling fast in Tuesday’s trading. The technology company’s share price was down 15.7% as of 2:20 p.m. ET. The S&P 500 was down 0.6% at the same point in the daily session, and the Nasdaq Composite was down 1.1%.
Celestica published its first-quarter results after yesterday’s market close and reported sales and earnings for the period that beat Wall Street’s targets. Despite performance beats in Q1 and seemingly solid forward guidance, the stock is getting hit with a big valuation pullback today.
Image source: Getty Images.
Celestica actually delivered a strong earnings beat in Q1
Celestica reported non-GAAP (adjusted) earnings per share of $2.16 on revenue of $4.05 billion in Q1. The company’s sales were roughly in line with the average Wall Street analyst estimate for the period, and earnings per share topped the average forecast by $0.08. Wall Street had been calling for the business to record a banner quarter of sales growth, and the company’s year-over-year revenue growth of nearly 53% delivered. Margins came in better than expected, but the earnings beat wasn’t enough to power gains for the stock.
Celestica
Today’s Change
(-15.30%) $-64.58
Current Price
$357.63
What’s next for Celestica?
With its Q1 report, Celestica actually raised its full-year sales target to $19 billion — a dramatic improvement over its previous guidance for sales of $17 billion. Meanwhile, the company set new guidance for adjusted earnings per share for the year to come in at $10.15 — up from its previous guidance for adjusted per-share earnings of $8.75. The average analyst estimate prior to the company’s Q1 report had called for annual earnings of $9.01 per share this year. Celestica’s Q1 results and updated guidance actually look quite strong, so investors should be cautious about overreacting to today’s pullback.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celestica. The Motley Fool has a disclosure policy.
