TTM Technologies Rises 28% in a Month: Should You Buy the Stock?

Core Insights - TTM Technologies (TTMI) shares have increased by 28% over the past month, outperforming the broader Zacks Computer and Technology sector's return of 8.3% and the Zacks Electronics - Miscellaneous Components industry's growth of 10% [1] Financial Performance - In the first quarter of 2025, TTM Technologies reported revenues of $648.7 million, a 14% year-over-year increase, surpassing the Zacks Consensus Estimate by 4.3% and exceeding the company's guidance of $600-$640 million [2] - The company's earnings per share reached 50 cents, beating the Zacks Consensus Estimate by 28.21% and exceeding the company's projection of $0.37-$0.43, marking a record for the first quarter [2] Market Positioning - TTM Technologies is well-positioned in high-growth markets such as aerospace and defense, data center computing, and networking, indicating continued positive momentum [3] - The aerospace and defense sector contributed 47% to total revenues in Q1 2025, with a 15% year-over-year revenue growth, driven by increased defense budgets and significant bookings related to key programs [5] - The data center computing segment accounted for 21% of revenues in Q1 2025, growing 15% year-over-year, benefiting from strong demand from hyperscale data center clients [6] - The networking business experienced a 53% year-over-year increase, driven by renewed demand for switch-related products linked to AI infrastructure upgrades [7] Client Base and Revenue Growth - TTM Technologies supports approximately 1,400 clients globally, including major companies in defense, computing, and healthcare [8] - Revenues from the top five customers increased to 45% of total revenues in Q1 2025, up from 42% a year earlier, reflecting stronger engagement with strategic partners [9] - The client portfolio includes notable companies such as Apple, Cisco, Tesla, Raytheon, and Bosch, highlighting TTM's reputation as a critical supplier [10] Future Outlook - For Q2 2025, TTM Technologies expects total revenues of $650-$690 million, with the Zacks Consensus Estimate at $667.99 million, indicating a 10.39% year-over-year growth [12] - Projected non-GAAP earnings for Q2 2025 are between 49-55 cents per share, with the consensus estimate at 52 cents, suggesting a year-over-year rise of 33.3% [12] Conclusion - TTM Technologies is experiencing strong momentum in defense, AI infrastructure, and networking, supported by a growing backlog and resilient customer demand, setting the stage for continued revenue acceleration and strategic expansion in 2025 and beyond [13]