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TTM Technologies faces stock decline despite earnings surprises

Published 2023-11-01, 02:20 p/m
TTMI
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TTM Technologies (NASDAQ:TTMI), a key player in the Zacks Electronics - Miscellaneous Components industry, has been experiencing a downward trend in its stock value this year, with a significant 23.8% drop. This performance contrasts with the overall market's gain of 9.2%. Despite these challenges, TTM has consistently delivered higher-than-expected earnings, surprising investors.

In the most recent quarter ending September 2023, TTM reported earnings of $0.43 per share, surpassing the Zacks Consensus Estimate by a considerable 53.57%. This result marks the continuation of the company's trend of beating earnings per share (EPS) estimates three times in the previous four quarters.

However, TTM's revenues for the same quarter stood at $572.58 million, slightly above estimates but lower than the preceding year's $671.08 million. This revenue dip adds to the concerns surrounding the company's performance.

Looking ahead, TTM's future performance is expected to be shaped by earnings expectations and outlooks. Tools such as the Zacks Rank will be instrumental in helping investors monitor revisions in earnings estimates. As such, investors and market watchers will continue to closely track TTM's financial health and performance amid these challenging times.

InvestingPro Insights

In addition to the analysis provided, InvestingPro offers real-time data and tips for a more comprehensive evaluation of TTM Technologies. According to InvestingPro data, the company's market cap stands at $1290M, with a P/E ratio of 25.43. The revenue for the last twelve months as of Q2 2023 reached $2379.18M, representing a growth of 0.74%. However, the quarterly revenue growth for Q2 2023 shows a decrease of -12.64%.

InvestingPro Tips shed light on some key aspects of TTM's performance. Firstly, TTM shows high earnings quality, with free cash flow exceeding net income. This is in line with the company's trend of beating earnings per share estimates. Secondly, despite the revenue dip, 3 analysts have revised their earnings upwards for the upcoming period, indicating a potential positive momentum in the future.

InvestingPro provides many more such tips, helping investors make informed decisions. For instance, it points out that TTM's liquid assets exceed short-term obligations, a factor that could be crucial in turbulent times.

By incorporating these InvestingPro Tips and data, investors can gain a more nuanced understanding of TTM's financial health and performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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