TTM Technologies, Inc. (NASDAQ:TTMI) Firing On All Cylinders


You should have bought TTM Technologies, Inc. (NASDAQ:TTMI) last month. That’s when it closed above $10.95, a resistance line that had proved impenetrable since mid-2012.

TTM Tech had been moving sideways since that time, but the Q3 numbers yesterday lit a rocket under the stock. It jumped 20.07% to close the day at $13.64 on volume of 6.10 million shares.  Clearly, the $10.95 resistance is now history.

If you look at the monthly chart, TTMI may well make a run for the April 2011 high of $19.64.

TTMI is a global printed circuit board maker.

TTM Technologies, Inc. (NASDAQ:TTMI) has a solid Q3

For its third quarter, TTM reported in-line revenue of $641.7 million, but EPS was $0.39, a solid $0.07 ahead of estimates. However, net sales were down 1.6% year on year.

“Our diversified revenue mix continues to yield benefits as significant improvements in the cellular phone end market offset modest sequential declines in the networking and communications and medical, industrial and instrumentation end markets,” said Tom Edman, President and CEO, on the conference call. “In addition, the aerospace and defense end market achieved another record high for quarterly revenues. I am particularly pleased to highlight our strong operational execution, which drove better-than-expected non-GAAP EPS during the quarter.”

In May 2015, TTM completed its acquisition of the Viasystems Group. The transaction doubled the size of the company and quickly catapulted TTM into a leading position as a supplier of high reliability PCBs used in the Automotive Industry.

Adjusted operational cash flow for the quarter was $102.7 million, up from $81 million in the second quarter.

The company made a term loan repayment at the beginning of Q4 and repriced its Term Loan B. It expects to now save $10 million in annual cash interest expenses.

TTM Technologies, Inc. (NASDAQ:TTMI) guidance for Q4

For Q4, TTM expects its EPS in the range of 42 cents to 48 cents. Revenue is expected in the range of $650 million to $690 million.

From all accounts, the stock appears to be headed higher, though there could be some profit taking at the current levels.


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