Celestica
Celestica
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  • Celestica (CLS) announced the financial results for the second quarter ended June 30, 2022
  • Revenue was $1.72 billion, an increase of 21 per cent compared to $1.42 billion for the same period last year
  • The company raised its 2022 revenue outlook to at least $6.7 billion, and tightened its 2022 non-IFRS adjusted EPS target to between $1.65 and $1.75
  • Celestica is a leader in design, manufacturing, hardware platform and supply chain solutions
  • Celestica Inc. (CLS) is down 7.07 per cent, trading at C$12.61 per share at 2:29 pm ET

Celestica (CLS) announced the financial results for the second quarter ended June 30, 2022.

Q2 2022 highlights:

  • Revenue of $1.72 billion, an increase of 21 per cent compared to $1.42 billion for the same period last year
  • Non-IFRS operating margin of 4.8 per cent, compared to 3.9 per cent for Q2 2021
  • ATS segment revenue increased 24 per cent while ATS segment margin was 4.5 per cent
  • CCS segment revenue increased 19 per cent while CCS segment margin was 5.0 per cent
  • Adjusted EPS (non-IFRS) of $0.44, against $0.30 for Q2 2021
  • Adjusted return on invested capital (non-IFRS) was 16.2 per cent versus 3.7 per cent for Q2 2021
  • Adjusted free cash flow (non-IFRS) was $43.3 million, compared to $31.2 million for Q2 2021
  • Earnings from operations as a percentage of revenue was 3.7 per cent
  • EPS was $0.29, compared to $0.21 per share for Q2 2021
  • Return on invested capital was 9.7 per cent compared to 8.7 per cent for Q2 2021
  • Cash provided by operations was $86.9 million, compared to $56.5 million for Q2 2021

The company also repurchased 1.0 million shares for $9.8 million under a normal course issuer bid.

Q3 2022 guidance

For Q3 2022, the company expects a negative $0.13 to $0.19 per share (pre-tax) aggregate impact on net earnings on an IFRS basis. This is for employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), and restructuring charges; and a non-IFRS adjusted effective tax rate of approximately 21 per cent (which does not account for foreign exchange impacts or unanticipated tax settlements).


2022 outlook

The company raised its 2022 revenue outlook to at least $6.7 billion, and tightened its 2022 non-IFRS adjusted EPS target to between $1.65 and $1.75. It anticipates 2022 non-IFRS operating margin to be between 4 and 5 per cent. The financial guidance and outlook assumes that the supply chain constraint impact on revenue and expenses does not materially worsen during the remainder of 2022.

Celestica is a leader in design, manufacturing, hardware platform and supply chain solutions. It brings global expertise and insight at every stage of product development – from the drawing board to full-scale production and after-market services.

Celestica Inc. (CLS) is down 7.07 per cent, trading at C$12.61 per share at 2:29 pm ET.


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