TTM Technologies Beats Q2 Earnings Estimates, Shares Fall on Weak View

TTM Technologies TTMI shares fell 8.3% to close at $43.34 on Friday. Since reporting second-quarter 2025 results on Wednesday (July 30), TTMI shares have dropped 11.1%. Year to date, shares have appreciated 75.1%, outperforming the broader Zacks Computer and Technology sector’s return of 9.1%. The post result drop in TTMI’s share price can be attributed to a weak third-quarter 2025 view. TTM Technologies now expects revenues between $690 million and $730 million. The high-end of the guidance range is lower than $730.6 million reported in second-quarter 2025.  The revenue figure beat the Zacks Consensus Estimate by 9.38% and increased 21% year over year. The Zacks Consensus Estimate for third-quarter 2025 revenues is currently pegged at $710.5 million, suggesting 15.2% growth from the figure reported in the year-ago quarter, but implies a 2.8% sequential decline.For third-quarter 2025, TTMI expects non-GAAP earnings between 57 cents and 63 cents per share. The company reported second-quarter 2025 non-GAAP earnings of 58 cents per share, which beat the Zacks Consensus Estimate by 11.54% and jumped 48.7% year over year. The consensus mark for third-quarter 2025 earnings is pegged at 55 cents per share, unchanged over the past 30 days and suggesting 34.15% growth from the figure reported in the year-ago quarter. TTM Technologies, Inc. Price, Consensus and EPS Surprise TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote TTMI’s Q2 Top-Line DetailsRevenues from Aerospace & Defense, Commercial, and RF&S Components were $327.6 million (44.8% of total revenues), $395.6 million (54.1% of total revenues) and $10.1 million (1.4% of total revenues), respectively. Year over year, Aerospace & Defense, Commercial, and RF&S Components revenues increased 19.3%, 22.4% and 11%, respectively.In the reported quarter, as a percentage of revenues, TTM Technologies’ generated 45% of total revenues from Aerospace and Defense end markets, 21% from Data Center computing, 15% from Medical, Industrial & Instrumentation, 11% from Automotive, and 8% from Networking. Growth in Data Center Computing and Networking was supported by rising demand driven by Generative AI applications (30% of revenues).Top five customers accounted for 41% of revenues in the reported quarter. Backlog was $496.8 million with Book to Bill of 0.89.TTMI’s Operating DetailsIn the second quarter of 2025, TTM Technologies reported a non-GAAP gross margin of 20.9%, which expanded 90 basis points (bps) year over year.Selling and marketing expenses increased 7.7% year over year to $21.3 million. General and administrative expenses jumped 29% year over year to $49.7 million. However, research and development expenses declined 18% year over year to $7 million. Adjusted EBITDA increased 29.6% year over year to $109.7 million in the reported quarter.Non-GAAP operating income surged 49.3% year over year to $81.4 million. As a percentage of revenues, the operating margin expanded 210 bps year over year to 11.1%.TTMI’s Balance Sheet & Cash FlowAs of June 30, 2025, TTM Technologies’ cash and cash equivalents were $448 million, while total debt was $917.1 million. Net leverage was at 1.2X at the end of the second quarter.In the reported quarter, net cash provided by operating activities was $97.8 million, while free cash flow was $37.6 million.TTMI’s Zacks Rank & Stocks to ConsiderTTM Technologies currently carries a Zacks Rank #2 (Buy).MKS Inc. MKSI, DoorDash DASH and Lumentum LITE are better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.MKS shares have declined 11.2% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.DoorDash shares have appreciated 48% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.Lumentum shares are up 27% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MKS Inc. (MKSI): Free Stock Analysis Report TTM Technologies, Inc. (TTMI): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks