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What: Shares of electronics-maker TTM Technologies were getting shocked today, falling as much as 17% today after getting downgraded by Stifel Nicolaus.
So what: In addition to the downgrade, shares were falling as a result of the broad-based sell-off around Apple and its suppliers, as TTM makes circuit boards for iPhones. Stifel Nicolaus, which dropped its rating from buy to hold, called out a number of issues with TTM, including "soft demand, excess industry capacity, and ongoing margin pressure."
Now what: Stifel Nicolaus' downgrade is just the latest in the past few months that has seen JPMorgan Chase and Longbow Research cut their estimates on the circuit-board maker as well. With the news yesterday that Apple cut its parts orders in half, this is probably a good time to stay away from its suppliers until further notice. TTM reports earnings on Feb. 4, with the consensus EPS at $0.18 a share. Given recent developments, it could easily miss those estimates.
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The article Why TTM Technologies Shares Tumbled originally appeared on Fool.com.
Jeremy Bowman owns shares of Apple. The Motley Fool recommends Apple and TTM Technologies and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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