NEW YORK (TheStreet) -- Shares of Celestica (CLS) - Get Report were falling 16% to $11.01 with heavy trading volume on Wednesday after the electronics manufacturing services company missed analysts' estimates for earnings in the third quarter.
On Tuesday, Celestica reported earnings of 22 cents a share for the third quarter, missing analysts' estimates of 31 cents a share. Revenue grew 0.7% year over year to $1.42 billion for the quarter, compared to analysts' estimates of $1.46 billion.
"Despite a challenging end market environment, Celestica delivered higher operating margin and return on invested capital compared to the second quarter of this year, based on our ongoing focus on continuous improvement and disciplined cost management," President and CEO Robert Mionis said in a statement.
Looking to the fourth quarter Celestica said it expects to report earnings of 27 cents to 33 cents a share and revenue of $1.375 billion to $1.475 billion. Analysts expect the company to report earnings of 28 cents and revenue of $1.39 billion for the fourth quarter.
About 2.7 million shares of Celestica were traded by 1:25 p.m. Wednesday, above the company's average trading volume of about 340,000 shares a day.
TheStreet Ratings team rates CELESTICA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
We rate CELESTICA INC (CLS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CLS