Shares of TTM Technologies (TTMI -1.55%) slumped on Thursday after the printed circuit board manufacturer reported its third-quarter results. While revenue beat analyst expectations, the bottom line came up short. The stock was down 11.7% at 1 p.m. EDT.
TTM reported third-quarter revenue of $716.8 million, down 5.2% year over year but $7.3 million higher than the average analyst estimate. Strength in the aerospace, defense, and cellular end markets was more than offset by weakness in other end markets.
Non-GAAP (adjusted) earnings per share came in at $0.37, down from $0.50 in the prior-year period and $0.01 below analyst expectations. This number included a $0.05-per-share gain from currency.
"For the third quarter, TTM continued to generate solid cash flow and delivered revenue and earnings within the previously guided range," said TTM CEO Tom Edman in prepared remarks included in the earnings release.
For the fourth quarter, TTM expects to produce revenue between $640 million and $680 million, along with non-GAAP EPS between $0.25 and $0.31. The company expects significant declines from the automotive, networking, and communications end markets in the fourth quarter. "Consequently, we are exercising discipline in managing our costs and focusing on continued cash flow generation," said Edman.
In the long term, TTM sees opportunities in 5G wireless technology and increased content in the automotive industry. But in the near term, weak demand is crimping sales and profits.