Please ensure Javascript is enabled for purposes of website accessibility

Why TTM Technologies, Inc. Jumped As Much As 17% Higher Today

By Anders Bylund – Jul 28, 2016 at 3:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Unpredictable shifts in the sales mix drove the circuit board maker's margins and bottom-line profits higher in the second quarter.

Image source: Getty Images.

What: Shares of TTM Technologies (TTMI 0.13%) surged as much as 17% higher in Thursday's trading action, boosted by a strong second-quarter report.

So what: In the second quarter, TTM saw sales rising 35% year over year to $601.8 million. Adjusted earnings nearly doubled, landing at $0.28 per diluted share. The top-line figure was exactly in line with analyst expectations, but earnings came as a strongly positive surprise. Here, Wall Street would have settled for $0.18 per share, or hardly any annual growth at all.

Of course, year-over-year comparisons are tricky due to the game-changing merger with Viasystems, which closed halfway into the second quarter of 2015. The two companies entered the merger with trailing revenue streams of roughly equal size.

Now what: CEO Tom Edman pointed out that TTM's business mix shifted in unpredictable ways during the second quarter -- which isn't always a bad thing.

"A rebound in the cellular and communications end markets more than offset modest declines in the automotive and computing end markets," Edman said in a prepared statement. "Our aerospace and defense end market hit a quarterly record in revenues."

Looking ahead, TTM's management expects third-quarter sales of approximately $640 million and earnings near $0.33 per share. Hitting those targets would amount to a 2% year-over-year sales drop but 38% higher earnings for the quick-turn circuit board manufacturer.

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TTM Technologies Stock Quote
TTM Technologies
TTMI
$15.69 (0.13%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.