2 Min Read
Jan 30 (Reuters) - Canadian contract electronics manufacturer Celestica Inc's quarterly profit narrowly beat analysts' average estimate due to a slight improvement in margins and a tax benefit.
Celestica, which has put the loss of contracts from struggling smartphone maker BlackBerry Ltd behind, said net income rose three-fold to $22.1 million, or 12 cents per share, in the fourth quarter.
In the year-earlier quarter, the company reported net income of $7.2 million, or 4 cents per share, hurt by a $17.7 million charge related to an acquisition.
The company earned 24 cents on an adjusted basis, which included a 2 cent tax gain.
Revenue fell 4 percent to $1.44 billion, mainly due to a drop in sales of servers.
Analysts on average had expected earnings of 23 cents per share on revenue of $1.47 billion, according to Thomson Reuters I/B/E/S.
The company, which competes with Plexus Corp and Benchmark Electronics, said operating margins improved to 3.3 percent from 3.1 percent.
Revenue from Celestica's communications business rose 6 percent.
The Toronto-based company makes servers and other technology products for companies such as IBM and Cisco Systems Inc .
Celestica's shares closed up 1 percent at C$11.25 on the Toronto Stock Exchange on Thursday.
The company's U.S.-listed shares also closed 1 percent higher at $10.05. They have lost nearly 12 percent of their value in the past three months.