What happened
Shares of circuit board manufacturer TTM Technologies (TTMI +0.04%) have jumped today, up by 10% as of 3 p.m. EST, after the company reported fourth-quarter earnings.
So what
Revenue in the fourth quarter came in at $706.5 million, which translated into adjusted earnings per share of $0.58 by the time you reach the bottom line. On a GAAP basis, TTM lost $0.02 per share, which included a $47.8 million pre-tax charge related to debt extinguishment. The results exceeded the high end of management's guidance and profitability similarly came in better than expected.
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Now what
TTM continues to diversify its business to reduce volatility, while the automotive market remains a core growth driver, according to CEO Thomas Edman on the conference call. The printed circuit board (PCB) content per vehicle is turning out to be much higher than previously expected, with PCB content per vehicle finishing 2016 at $60. Some hybrid and electric vehicles even have over $150 in PCB content per vehicle.
The company fully integrated the acquisition of Viasystems in 2016, and used free cash flow to repay debt in order to delever the balance sheet. In terms of outlook, TTM expects first-quarter sales to be in the range of $595 million to $635 million, with adjusted earnings per share of $0.25 to $0.31.
