TTMI Gears Up to Report Q4 Earnings: Buy Now or Wait for Results?

Core Insights - TTM Technologies (TTMI) is set to report its fourth-quarter 2025 results on February 4, with expected net sales between $730 million and $770 million, reflecting a 15.55% year-over-year increase [1] - The company anticipates non-GAAP earnings per share in the range of 64 to 70 cents, with a consensus estimate of 68 cents, indicating a 13.33% growth year-over-year [2] Demand and Revenue Growth - Demand from data center computing and networking markets is accelerating due to the expansion of generative AI, with data center computing revenues increasing by 44% year-over-year in Q3 2025, expected to account for 28% of total Q4 sales [3] - The networking segment also saw a 35% year-over-year growth, driven by sustained AI demand and new product introductions, contributing positively to TTMI's fourth-quarter performance [3] Aerospace and Defense Segment - The aerospace and defense (A&D) segment is providing strong revenue stability, with a program backlog of approximately $1.46 billion, supported by robust demand due to defense budget increases and significant bookings for key platforms [4] - A&D is expected to represent around 42% of total revenues, likely bolstering fourth-quarter results [4] Capacity Expansion Initiatives - TTMI is expanding its capacity to meet rising demand in AI-driven markets, with the Penang, Malaysia facility ramping up and expected to contribute to revenue growth in Q4 2025 [5] - The development of the Ultra-HDI PCB facility in Syracuse, NY, is progressing, with volume production anticipated in the second half of 2026, supporting advanced PCB demand [5] Automotive Market Challenges - The automotive segment is facing challenges, with revenues declining to 11% of total sales in Q3 2025 from 14% in the previous year, and expected to contract further to around 9% in Q4 [6] - This segment is anticipated to negatively impact overall results due to continued weakness in demand [6] Overall Performance Expectations - TTMI is expected to report double-digit revenue and earnings growth for Q4 2025, benefiting from strong AI-led growth in data center and networking markets, while the automotive segment remains a headwind [7] - The company's current Earnings ESP is 0.00% with a Zacks Rank of 1, indicating uncertainty regarding an earnings beat this time [8]