The Gory Details on TTM Technologies' Double Miss

Seth Jayson, The Motley Fool
Updated

TTM Technologies (NAS: TTMI) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), TTM Technologies missed estimates on both revenue and earnings per share.

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


Margins contracted across the board.

Revenue details
TTM Technologies logged revenue of $300.5 million. The five analysts polled by S&P Capital IQ predicted a top line of $320.7 million on the same basis. GAAP-reported sales were 12% lower than the prior-year quarter's $342.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.15. The five earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.15 for Q1 were 55% lower than the prior-year quarter's $0.33 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.8%, 510 basis points worse than the prior-year quarter. Operating margin was 7.3%, 600 basis points worse than the prior-year quarter. Net margin was 4.2%, 370 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $339 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.24.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 573 members rating the stock outperform and 19 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give TTM Technologies a green thumbs-up, and five 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 $15.33.

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At the time thisarticle 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 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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