Celestica Reports Strong Q3 Growth but Faces Free Cash Flow Concerns
Celestica (CLS) reported robust third-quarter financial results, characterized by an 83% year-over-year revenue increase and a 109% surge in earnings per share (EPS), both of which exceeded market consensus. Following these results, the company raised its long-term guidance, targeting $40 billion in revenue and $21.50 non-GAAP EPS by 2027. Despite the top-line growth, concerns are mounting regarding the company's cash conversion efficiency. The analyst notes that free cash flow (FCF) is expected to turn negative by 2027 due to significant working capital requirements and heavy investment needs. Current FCF levels appear to be supported by receivables sales rather than organic operational strength, leading to a 'Hold' rating based on the tension between cheap future earnings and expensive current cash generation.
Tickers: $CLS
Topics: earnings report EPS beat financial guidance free cash flow revenue growth
Read the full article at Seeking Alpha
Part of the story DeFi Technologies Schedules Shareholder Call for Q3 2026 Financial Results (51 articles)