TTM Technologies 2025 Q1 Earnings Strong Performance as Net Income Surges 207.5%

Daily EarningsWednesday, May 7, 2025 5:12 am ET
63min read
TTM Technologies (TTMI) reported its fiscal 2025 Q1 earnings on May 6th, 2025. The company exceeded expectations with a 207.5% increase in net income to $32.18 million compared to the previous year. Revenue growth was robust, driven by demand in the Aerospace and Defense sectors, alongside AI-related needs in Data Center Computing. TTM Technologies' guidance for the next quarter remains optimistic, with projected revenues between $650 million and $690 million, signaling confidence in continued growth and operational performance.

Revenue
TTM Technologies reported a revenue increase of 13.8% for 2025 Q1, totaling $648.67 million, up from $570.11 million in 2024 Q1. The Printed Circuit Board (PCB) segment significantly contributed to this growth, generating $639.85 million. The RF&S Components segment brought in $8.82 million, highlighting diverse revenue streams within the company.

Earnings/Net Income
TTM Technologies' earnings per share (EPS) rose significantly by 220.0% to $0.32 in 2025 Q1, compared to $0.10 in 2024 Q1. This growth reflects the company's expanding profitability and operational efficiency, with net income reaching $32.18 million, a 207.5% increase from the previous year's $10.47 million. The EPS improvement signals a positive outlook for the company's financial health.

Price Action
The stock price of has edged up 2.57% during the latest trading day, surged 23.07% during the most recent full trading week, and increased by 33.81% month-to-date.

Post Earnings Price Action Review
The strategy of buying TTM Technologies (TTMI) shares after a quarter of revenue growth and holding for 30 days has not yielded returns over the past five years. The strategy's performance was flat, with a 0.00% return, significantly underperforming compared to a benchmark return of 27.22%. This resulted in an excess return of -27.22%, indicating considerable underperformance against the benchmark. Additionally, the Sharpe ratio and maximum drawdown remained at 0.00%, reflecting no risk but also failing to produce any returns. This underscores the strategy's ineffectiveness in generating value for investors despite favorable revenue trends, highlighting the need for a reassessment of investment approaches concerning TTM Technologies.

CEO Commentary
Tom Edman, CEO of TTM Technologies, expressed satisfaction with the company's performance, highlighting a 9.4% year-over-year revenue growth driven by strong demand in the Aerospace and Defense sectors, alongside a significant surge in Data Center Computing due to AI-related needs. He acknowledged challenges such as a $33 million goodwill impairment in the RF&S Components segment, which impacted profitability. Despite these hurdles, Edman emphasized the company’s strategic focus on expanding U.S. manufacturing capabilities and enhancing operational efficiencies, projecting confidence in maintaining solid margins and a healthy cash flow.

Guidance
For the first quarter of 2025, TTM Technologies expects revenue between $600 million and $640 million and projects non-GAAP earnings per share in the range of $0.37 to $0.43. The company plans capital expenditures of $230 to $250 million, indicating a continued investment in growth and operational capacity amidst a challenging market environment.

Additional News
TTM Technologies announced its participation in several upcoming investor conferences, reflecting its ongoing engagement with the financial community. The management team will present at the Barclays Leveraged Conference in Austin, Texas, on May 20th, the B. Riley Investor Conference in Marina del Rey, California, on May 21st, and the Stifel Cross Sector Insight Conference in Boston, Massachusetts, on June 3rd. These events provide TTM Technologies an opportunity to discuss its strategic initiatives and financial outlook with investors, aligning with its efforts to enhance transparency and shareholder value.

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