Celestica Rises to Two-Year High as Profit Tops EstimatesGerrit De Vynck
Celestica Inc., the Canadian electronics manufacturer, rose to a two-year high after second-quarter profit topped analysts’ estimates.
Celestica rose 6.3 percent to C$10.40 at the end of trading in Toronto after increasing as much as 9.4 percent, its biggest one-day gain in 15 months.
The Toronto-based company reported earnings of 21 cents a share, beating the 17-cent average of 13 analysts’ estimates compiled by Bloomberg. Revenue was $1.5 billion, beating the estimate of $1.44 billion.
“The revenue upside was driven in large part by the communications segment,” said Thanos Moschopoulos, an analyst at Bank of Montreal, in a note to investors. “Management noted that it saw strong demand from several customers kick-in toward the end of the quarter.”
Celestica forecast adjusted earnings of 17 cents to 23 cents a share for the third quarter, according to the statement today. “Despite the challenging economic environment, we are projecting continued growth,” the company said in the statement.
The former maker of smartphones for Waterloo-based BlackBerry Ltd. has shifted its focus to contracts in the so-called diversified category, which includes defense, industrial and semiconducter customers.
Chief Executive Officer Craig Muhlhauser said in an interview in April that he realized he had to pull back the company’s dependence on BlackBerry at the end of 2011, when the Canadian company was struggling to compete with Apple Inc. and Samsung Electronics Co.
Celestica increased 31 percent this year, compared with a 17 percent gain for an index of information technology companies listed on the Toronto Stock Exchange.