to view your mail
Yahoo Finance Plus
U.S. markets open in 3 hours 53 minutes
Celestica Inc. (CLS)
NYSE - NYSE Delayed Price. Currency in USD
Add to watchlist
At close: 4:00PM EDT
180 reactions on $CLS conversation
Sign in to post a message.
been buying on dips & holding this stock.....long term it has a lot of room to run.
Market reaction to a strong quarter is not what I expected, but I think we are going to bounce off the previous resistance and continue upward momentum. The company has a well diversified business, including defence and government contracts, as well as global reach. Quite glad having it in my portfolio.
I had this stock for 20 years and its dead. They had their hay days in 2000 and that's it.
Be sure to add this stock before wed estimates. Strong buy for me
Very downbeat analysis from highly respected *independent* research firm doesn't inspire confidence in CLS management and stock:
March 29, 2019
Celestica has posted disappointing results of late. In the fourth quarter, the
top line increased 11%, to $1.73 billion, bolstered by acquisitions. Most recently,
CLS bought Impakt, a manufacturer of highly specialized, large-format semiconductor and organic light emitting diode (OLED) display capital equipment in a $329 million deal. However, news was less favorable on the profitability front.
The Advanced Technology Solutions (ATS) segment provides manufacturing products and services to a diverse set of end markets, including capital equipment. Performance in that industry has become particularly soft, due to slower
semiconductor capital equipment demand. Segment operating profitability dropped
150 basis points, year over year, to 3.7%. Lower semiconductor capital equipment
needs are now anticipated throughout 2019, in contrast to a prior demand surge.
The company plans to better align the ATS business to the current revenue
environment. In other words, more restructuring efforts are on the way. Indeed, restructuring has been common at this electronics manufacturer, largely due to the cyclical nature of its end markets.
There will likely be considerable choppiness in the near term. CLS issued first-quarter operating-margin guidance of 2.6%, far softer than its longer-term goal of 3.75%-4.5%. We are shaving a nickel off our March-quarter earnings estimate, to $0.10 per share.
Restructuring expenses are running high, and the efforts are taking longer than expected. In addition to the ATS work, the company has been reducing storage and server capacity and headcount. That plan is expected to wrap up in late 2019, about half a year later than originally anticipated. Also, revenues are likely to be impacted by the voluntary departure from lower-margin jobs, so we estimate very modest top-line
growth in the near future.
Capital appreciation potential out to 2022-2024 is below average.
Thanks to buyback the stock is back to where it was before Q4 announcement. Now that buyback is almost over we can take a look again at a disaster that Q4 and 2018 really was for CLS.
The operation and balance sheet are clearly in shambles.
$93M less in cash
$183M more in receivables, $195M more in payables,
$87M more in current liabilities
$484M more in LT debt
$51M less in non-current (pension-related assets)
$175M more in goodwill + $262M more in "intangible assets" (due to poor acquisitions)
That's additional $437M in eventual write-downs of company tangible book value in a quarter of management's choosing to do a "kitchen sink" write-off.
Company is suffering not just from a negative cash-flow (i.e., not profitable, no matter what the "adjusted earnings" say, but also a obvious cash flow problem - they had to increase sales of receivables to 2 third-party banks from $200M to $250M, to expedite the payment, which means they need cash turnover faster and that amount of receivables should be also decreased to account for a discount given to banks.
Even conservatively, without amortization and depreciation prior to Q4 disaster filing the tangible book value of company was around $8.40 - $8.60 on a 140.6M diluted shares basis. Now it's below $5 per share. Buying back more expensive shares is not going to help.
The management should be replaced before what happened to FLEX or GE happens to CLS shareholders.
So Celestica beats the earnings estimates and then it drops 10%. Go figure.
If you look at this stocks chart on the weekly or monthly you can see a massive head and shoulders pattern
Nobody talks about this stock. A major electronics corp with very little chatter. Any scoop on where it is going and its future?
Debt downgrade after piling up more debt. Full panic mode.
TORONTO Nov. 1, 2018-- S&P Global Ratings today said it has lowered its issue-level rating and revised its recovery rating on Celestica Inc. (CLS)' s senior secured debt. Celestica (CLS) is proposing to issue an incremental US $350 million add-on to the existing term loan that lowers the recovery prospects for the senior secured lenders. As a result, we are lowering our issue-level rating on the senior secured debt to' BB' from' BB+' and revising our recovery rating on the debt to '3' from '2'. The '3' recovery
reflects our expectation of meaningful (50%-70%) recovery in a default scenario.
We expect the company will use the proceeds to fund the US$329 million
acquisition of Impakt Holdings LLC.
10/30/2018 Zacks Investment Research, Inc. downgrades CELESTICA INC from HOLD to SELL.
11/05/2018 Thomson Reuters/Verus downgraded CELESTICA INC (CLS) from BUY to HOLD.
11/09/2018 Jefferson Research downgraded CELESTICA INC (CLS) from BUY to HOLD.
What a mess.
Celestica reports late July.
Find the latest earnings report and earnings surprise history for Celestica, Inc. (CLS) at NASDAQ.com.
Find the latest earnings report and earnings surprise history for Celestica, Inc. (CLS) at NASDAQ.com.
Just went short at $11.05 and $11.10
They just lost Dell business and their sales haven't been risng in a while. To compensate, they are buying a California company for 3x sales ($329m) which means that they now have more debt on balance sheet than they have cash on hand, and who the hell pays 3x sales for EMS company owned by PE firm anyday, let alone today when EMS is slowing down on top of that, just to get some slighty better "product mix" margins on $110M in sales (1.5% of CLS sales)? look FLEX, JBL, SANM that tried similar stunts.
Their free cash flow is negative, GAAP earnings are down from last year, they are trying to "do something" to counter Dell loss, but doing wrong thing is even worse.
They might have made this quarter's non-GAAP number but I can't see forward guidance be any good, except putting out "hope" for Impakt. And Macquerie raised them on acquisition - another bad sign.
Acquis: Celestica's Financial Flexibility Exhausted
(S&P Global Ratings) Oct. 16, 2018--S&P Global Ratings today said that
electronic manufacturing service provider Celestica Inc. (BB/Stable/--) plans
to acquire U.S.-based capital equipment manufacturer Impakt Holdings LLC,
which will temporarily increase debt leverage, will exhaust the company's
headroom at the 'BB' rating level. We expect the $329 million debt-funded
acquisition will increase the company's adjusted pro forma debt-to-EBITDA
ratio by 1x to about 3x--a level that is at the higher end of our tolerance at
the current rating.
Why this bullish jump? I can understand crude oil jump $3, but why celestica also jump?
As of 10:27AM EDT. Market open.
My last year working for them was in 2001. That was the end of a contract with HP. Then I was given a nice separation package. They were actually only interested in my employment at a lower pay scale. I was unwilling and eventually they stopped asking. They had trouble keeping skilled people and had to dummy down. I bought and sold their stock prior to the "layoff". I must have made $50K on my trades. They have never gone back to the prices of the early 2000s. In my opinion they are still losers and I will NEVER buy their stock again. Avoid this stock, bad management.
short this from 9.8 👍
Here's why CLS reminds me of GE:
Just like GE, CLS management is a cash killer. They have a declining "managed earnings" profile on flat-to-higher revenues (due to expensive acquisitions) and at the same time a negative free cash flow. And in the last fiscal year (over 4Qs) CLS had increase in "invested capital" of nearly $343M through debt but increase in "working capital" of only $17M, while they keep buying back stock trying to show better "earnings"
This explains huge drop in tangible book value over the last year, that's even before write-downs, which they will eventually have to take.
From report on GE: "And while GE faces crushing debt, it's dumping assets. One recent asset sale, of a biopharma unit, will bring in more than $20 billion.
Still, investors should brace for more pain before things start to get better.
GE earnings per share have fallen for two straight years, crumbling 35% to 65 cents in 2018. Analysts expect GE earnings to fall 11% to 58 cents a share in 2019.
Sales growth has been lackluster, rising 3% to $121.62 billion last year. Analysts see revenue shrinking to $119.67 billion in 2019 and to $119.59 billion in 2020, as the conglomerate sheds more businesses.
Free cash flow from industrial operations — a metric closely watched by GE stock investors — has been declining for years."
YAY! The "aggressive stock buyback" is starting. Have to buy the stock to push the price higher and cancel out all the newly converted options and new ssuance to pay $millions to CEO way above average for this size company.
Is being "in the market" and buying a third of average quarterly trading volume normal?
Another nightmare on Don Mills Road. And this was supposed to be a "good" quarter!
Bad miss on earnings, even worse forecast for next, and that's despite buying almost 10 million shares (what a waste of money!) to pretty up earnings report... Sales are only up on expensive acquisitions. "Adjusted" earnings down, margins waay down, debt waay up, inventory waay up, intangibles (unreal assets) waay up by more than $500M, cash flow negative (so really lost money last year), equity is waay down compared to last year... and economies are slowing down so no relief in sight.
Management has no ideas, except bad ones like overpaying for bad acquisitions which will be written off soon (next year, maybe?) or buying back expensive stock with money they have to borrow and pay interest on. How long can they be putting a lipstick on this pig?
I expected a somewhat defensible quarter with lowered guidance but the management has outdone itself in the best quarter of the year for EMS cos. All EMS industry is hurting, but this management keeps finding ways to hurt shareholders even more.
Will not hold $8 in good market, bad market may see below $7.
Lol bought at 8.8 at closing yesterday and sold today at opening 9.22 easy money
Yahoo Finance Insights
CLS is down -5.89% to 10.38
Bitcoin price drops after Turkey bans cryptocurrency payments
Yahoo Finance UK
Actor Alfonso Ribeiro on diversity in Hollywood
Yahoo Finance Video
The monthly stimulus checks for families will start in July, IRS now says
Advertise with us
© 2021 Verizon Media. All rights reserved.
About Our Ads
Discover new investment ideas by accessing unbiased, in-depth investment research