Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of printed circuit board specialist TTM Technologies soared 17% today after its quarterly results topped Wall Street expectations.
So what: The stock has plummeted over the past year on uninspiring growth, but a wide first-quarter beat -- adjusted EPS of $0.13 on revenue of $325.4 million versus the consensus of $0.10 and $320.5 million -- suggests that the worst may be behind it. While margins remain pressured, improving demand in TTM's cellular phone, networking, and aerospace & defense end markets is giving investors plenty of good vibes over a prolonged turnaround.
Now what: Management now sees second-quarter adjusted EPS of $0.08-$0.14 on revenue of $320 million-$340 million. "We remain confident in our strategy to address our served markets and in our growth prospects for our advanced technology [printed circuit boards]," said CEO Kent Alder. "Looking toward the second half of the year, we are becoming more positive about the business climate and we believe TTM is well positioned for an improving demand environment." With the stock still off about 25% from its 52-week highs and trading at a forward P/E of 9, there might even be some room left to buy into that bullishness.
Interested in more info on TTM? Add it to your watchlist.
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The article Why TTM Tech Shares Took Off originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 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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