TTM Technologies Earnings Preview

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While TTM Technologies (NAS: TTMI) missed estimates last quarter, investors hope that it will bounce back and outpace Wall Street expectations this quarter. The company will unveil its latest earnings on Tuesday, February 7. TTM Technologies is a manufacturer of complex printed circuit boards used in sophisticated electronic equipment. The company provides backplane and sub-system assembly services for both standard and specialty products in defense and commercial operations.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back TTM Technologies, with six of seven rating it a buy and the remainder rating it a hold. Analysts like TTM Technologies better than competitor Sanmina-SCI overall. While analysts still rate the stock a Moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $352.9 million in revenue this quarter. That would represent a decline of 6.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.29 per share. Estimates range from $0.28 to $0.30.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 98.2% awarding it an "outperform" rating. Most of the community is in line with the All-Stars, with 97.5% giving it a rating of "outperform." Fools are bullish on TTM Technologies and haven't been shy with their opinions lately, logging 148 posts in the past 30 days. TTM Technologies has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Revenue has now gone up for three straight quarters. The company's gross margin shrank by 2.7 percentage points in the last quarter. Revenue rose 0.1% while cost of sales rose 3.6% to $287.6 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. In the last two quarters, TTM Technologies has experienced a dip in operating margins year-over-year. Operating margins reflect the total sales revenue that the company retains after costs. Here is how TTM Technologies has been doing for the last four quarters: 

QuarterQ3Q2Q1Q4
Gross Margin19.7%21.1%23.9%24.1%
Operating Margin10.1%-2.3%13.3%14.1%
Net Margin6.8%-5.7%7.9%8.8%

For all our TTM Technologies-specific analysis, including earnings and beyond, add TTM Technologies to My Watchlist.

Motley Fool newsletter services have recommended buying shares of TTM Technologies. Motley Fool newsletter services have recommended creating a covered strangle position in TTM Technologies.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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