TTM Technologies Beats Estimates but Has a Big Earnings Drop

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TTM Technologies (NAS: TTMI) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), TTM Technologies beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
TTM Technologies recorded revenue of $361.5 million. The five analysts polled by S&P Capital IQ expected to see revenue of $351.8 million. Sales were 3.2% lower than the prior-year quarter's $377.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.26. The three earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share on the same basis. GAAP EPS of $0.10 for Q4 were 76% lower than the prior-year quarter's $0.41 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.7%, 440 basis points worse than the prior-year quarter. Operating margin was 9.1%, 500 basis points worse than the prior-year quarter. Net margin was 2.3%, 650 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $322.5 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.18.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 594 members out of 610 rating the stock outperform, and 16 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give TTM Technologies a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TTM Technologies is buy, with an average price target of $15.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of TTM Technologies. Motley Fool newsletter services have also 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.

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