TTM Set to Report Q2 Earnings: How Should You Play the Stock?

Core Insights - TTM Technologies (TTMI) is expected to report second-quarter fiscal 2025 results on July 30, with projected revenues of $650-$690 million, indicating a 10.39% year-over-year increase [1][9] - The company anticipates non-GAAP earnings per share (EPS) between 49 cents and 55 cents, reflecting a 33.33% year-over-year growth [2][9] - TTMI has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 17.65% [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for TTMI's revenues is $667.99 million, which aligns with the company's guidance [1] - The consensus mark for earnings is set at 52 cents per share, unchanged over the past 30 days [2] Segment Performance - The aerospace and defense segment is experiencing strong growth, supported by a $1.55 billion backlog and increased visibility in radar, surveillance, and missile systems [3] - Data center computing and networking are key growth drivers, with AI infrastructure demands likely boosting the need for advanced Printed Circuit Boards [4] Challenges and Risks - Tariff-related uncertainties and weakness in the automotive market may limit revenue growth, with ongoing inventory corrections expected to keep automotive volumes subdued [5] - Start-up costs from the Penang facility are anticipated to compress near-term margins, alongside tariff exposure on imported materials [5] Earnings Model Insights - According to the Zacks model, TTMI has an Earnings ESP of 0.00% and a Zacks Rank of 1 (Strong Buy), indicating a lower likelihood of an earnings beat [6]