Celestica stumbles post-earnings

Kim Khan· Host0:00

[intro music] Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Tuesday, April twenty-eighth, and I'm your host Kim Khan, filling in for Julie Morgan. Celestica is slumping in pre-market trading even after posting Q1 earnings and guidance that topped estimates. In what looks like a case of good but not good enough, the AI infrastructure play reported EPS of two sixteen ahead of the two oh nine forecast on revenue of four point oh five billion, right in line with expectations. Shares have surged more than forty percent year to date and more than three hundred and fifty percent over the past fifty-two weeks. For Q2, Celestica expects EPS between two fourteen and two thirty-four above the two thirteen consensus. Sales are projected between four point one five and four point four five billion, with the midpoint topping the four point one eight billion estimate. CEO Rob Mionis said the company's twenty twenty-seven outlook continues to strengthen, citing accelerating growth in cloud connectivity and advanced technology solutions. Seeking Alpha analyst Kumquat Research upgraded the stock to strong buy following the results, noting that as an original design manufacturer rather than a silicon designer, its growth will likely be more modest than some of its peers. But what it lacks in explosive growth, it makes up for with lower risk and a manufacturing moat that will be hard to cross, the analyst added, calling CLS a differentiated value play within a high beta AI portfolio. Meanwhile, loose lips sink stocks. Poet Technologies is extending losses