Celestica (CLS) stock is soaring 5.11% in Friday's pre-market trading session, following the company's impressive quarterly earnings report that showcased strong growth in AI-related business segments.
The electronics manufacturing services company posted a stellar performance, with revenues up 28% compared to the same period last year. Notably, Celestica's AI-related communications segment saw a remarkable 82% increase, highlighting the company's successful positioning in the booming artificial intelligence market.
In addition to top-line growth, Celestica demonstrated improved profitability, with operating margins expanding by 90 basis points. This operational efficiency translated into a substantial 52% increase in earnings per share, surpassing analysts' expectations.
Adding to investor optimism, Celestica provided an even stronger outlook for the upcoming fourth quarter, suggesting continued momentum in its AI-related businesses. This forward-looking guidance is likely contributing to the stock's significant pre-market rally.
As the AI boom continues to accelerate, Celestica's strong performance in this sector positions it as a potential beneficiary of the ongoing technological transformation. Investors appear to be recognizing the company's strategic alignment with high-growth AI markets, driving today's stock surge.
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