TTM Technologies (TTMI) 2025 Conference Summary Company Overview - TTM Technologies is a technology solutions provider primarily focused on printed circuit boards (PCBs), which account for approximately 75% of its business. The company generated revenues of about $2.5 billion last year and is diversifying into integrated electronics and subsystems [3][4][6]. Core Business Segments - The company operates in five end markets: - Aerospace and Defense (46% of net sales in 2024) - Data Center Computing - Networking - Medical - Automotive [11][20][22]. Growth and Diversification Strategy - TTM has grown through acquisitions and has shifted focus from traditional PCB manufacturing to more complex, value-added products, particularly in aerospace and defense [6][7]. - The company has a program backlog of nearly $500 million, indicating strong future revenue potential [14]. - Year-to-date revenue growth for 2025 is approximately 15%, with defense revenue growth year-over-year at about 21% [13]. Market Trends and Opportunities - The rise of generative AI is driving demand in data center computing and networking, which are expected to grow significantly [18][22]. - The automotive sector is facing challenges, with expected growth below the industry benchmark due to slower adoption of electric vehicles (EVs) in the U.S. and Europe [22][24]. - The medical and industrial automation sectors are also showing growth, driven by advancements in technology and increased demand for sensors and testing equipment [25][26]. Operational Expansion - TTM is expanding its manufacturing footprint globally, with significant operations in Asia (primarily China and Penang) and the U.S. [8][30]. - A new facility in Penang is expected to generate $200 million in annual revenues, while a facility in Syracuse, New York, will focus on ultra-high-density interconnect PCBs for military applications, projected to generate $100 million [32][34]. Financial Performance - The company has achieved operating margins of around 11% to 13%, with a target of maintaining a leverage ratio between 1.5 to 2 [36][40]. - Strong cash flow from operations has enabled TTM to invest in growth and maintain a solid capital structure [39][42]. Strategic Focus - TTM's strategic focus includes diversification, differentiation through engineering capabilities, and operational discipline [26][35]. - The company is also exploring opportunities in the commercial space sector and is preparing for potential onshoring of manufacturing related to generative AI [18][50]. Leadership Transition - A new CEO has recently been appointed, bringing a more technical background, which may influence the company's focus on technology and innovation moving forward [56][58]. Conclusion - TTM Technologies is well-positioned for growth in aerospace and defense, data center computing, and networking, while navigating challenges in the automotive sector. The company's strategic investments and operational expansions are expected to enhance its competitive edge in the market [57][44].

Group 1 - Jabil, Inc. (JBL) has experienced a stock price increase of 97.9% over the past year, which is lower than the industry's growth of 127.8% and Celestica Inc.'s increase of 361.6% but higher than Flex Ltd.'s growth of 76.6% [1][8] - The company's strategy of end-market and product diversification is a significant growth catalyst, aiming to ensure that no single product or product family exceeds 5% of operating income or cash flows in any fiscal year [3][5] - Jabil's revenue growth is expected to be driven by strong demand in healthcare, cloud, retail, and industrial sectors, alongside the adoption of 5G wireless and cloud computing [4][9] Group 2 - Jabil has raised its 2025 revenue outlook to $29 billion and adjusted EPS to $9.33, with expectations of generating over $1.2 billion in adjusted free cash flow [8][9] - The company has restructured its internal operations to align more closely with specific end markets, aiming to develop domain-specific expertise and enhance responsiveness to market demands [6][15] - Jabil's collaboration with Intel on 800G silicon photonics modules positions it as a key player in the AI/ML ecosystem, promising high performance and reliability in data transmission [10][11] Group 3 - The Zacks Consensus Estimate for Jabil's 2025 earnings has increased by 8.7% to $9.39 per share, indicating positive market sentiment regarding the company's growth potential [12][17] - Jabil is well-positioned to capitalize on growth opportunities in AI data center hardware, power and energy infrastructure, and healthcare, supported by strong margins and robust free cash flow [15][16] - The company has a long-term earnings growth expectation of 16.6% and a trailing four-quarter average earnings surprise of 6.7%, reflecting its strong financial outlook [17]

Core Insights - Celestica (NYSE: CLS) stock has seen a significant increase of approximately 344% since the initiation of bullish coverage in March 2024 [1] Group 1: Company Performance - The stock performance of Celestica has been highlighted as one of the top picks, indicating strong investor interest and confidence in the company's future prospects [1] Group 2: Investment Strategy - The investment group Beyond the Wall Investing offers features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1]

Core Insights - Key Tronic Corporation's shares increased by 5.3% following the release of its fourth-quarter fiscal 2025 results, outperforming the S&P 500's 0.2% growth during the same period [1] - The company reported a significant decline in revenues for both the fourth quarter and the entire fiscal year, with fourth-quarter revenues at $110.5 million, down from $126.6 million year-over-year, and total fiscal 2025 revenues at $467.9 million, a 17% decrease from $566.9 million in fiscal 2024 [2] - The net loss for the fourth quarter widened to $3.9 million, or 36 cents per share, compared to a loss of $2 million, or 18 cents per share, in the prior year, with a total fiscal year net loss of $8.3 million, or 77 cents per share, compared to a loss of $2.8 million, or 26 cents per share, in the previous year [3] Financial Metrics - The gross margin contracted to 6.2% in the fourth quarter from 7.2% a year earlier, but improved to 7.8% for the full year from 7% in fiscal 2024 due to workforce reductions and operational streamlining [4] - Operating margin decreased to 0.1% for the year from 1.2% in the prior year, impacted by credit loss adjustments [4] - Cash flow from operations improved to $8.8 million in the fourth quarter from $7.7 million in the same quarter last year, totaling $18.9 million for fiscal 2025 compared to $13.8 million in fiscal 2024 [5] Management Insights - The CEO described fiscal 2025 as a year of transition and uncertainty, citing tariff-related disruptions and strategic shifts in manufacturing, including expansion in the U.S. and Vietnam [6] - Key Tronic secured program wins in various industries and entered a significant services contract projected to exceed $20 million in annual revenues [7] - The company faced headwinds from reduced demand and tariff fluctuations, with severance expenses of $2.9 million impacting profitability, although operational efficiencies are expected to enhance margins once revenue growth resumes [8] Balance Sheet and Guidance - Adjustments for expected customer collections amounted to $1.1 million in the fourth quarter and $1.8 million for the year, further pressuring reported results [9] - Key Tronic did not provide revenue or earnings guidance for the first quarter of fiscal 2026 due to ongoing uncertainties but expressed confidence in improving gross margins as production volumes increase [10] Developments and Investments - The company is investing in its global footprint, with a new $28 million facility in Arkansas expected to create over 400 jobs, and production capacity in Vietnam being doubled [11] - These expansions aim to offer customers flexible manufacturing options while addressing rising wage pressures through automation and efficiency improvements [11]

Core Viewpoint - Celestica (CLS) shares have recently declined by 10.4% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, suggesting that selling pressure may be exhausting. This pattern forms when there is a small candle body with a long lower wick, typically occurring during a downtrend [4][5]. - The hammer pattern signals that bears may be losing control, and the buying interest that emerges can indicate a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for CLS, with a 12.2% increase in the consensus EPS estimate for the current year over the last 30 days. This indicates that analysts expect better earnings than previously predicted [7][8]. - CLS holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises. Stocks with this ranking typically outperform the market [9][10].

Core Insights - Celestica Inc. (CLS) and Jabil Inc. (JBL) are prominent players in the electronics manufacturing services (EMS) industry, with Celestica being one of the largest EMS companies globally, serving various sectors including cloud-based services and business enterprises [1][4] - Jabil is also a major global supplier of EMS solutions, providing a wide range of services across multiple industries such as aerospace, automotive, and telecommunications [2][10] - Both companies are well-positioned to meet the growing demands of artificial intelligence (AI) within the EMS landscape [3][8] Celestica Overview - Celestica has over two decades of manufacturing experience and focuses on delivering cloud-optimized data storage and networking solutions, which are increasingly in demand due to the rise of AI applications [4][5] - The company emphasizes product diversification and aims to strengthen its presence in high-value markets, which enhances business resilience by reducing dependence on any single industry [5] - Despite its strengths, Celestica faces challenges with high research and development costs and stiff competition from other industry giants, which have led to margin pressures [6] Jabil Overview - Jabil operates in 100 locations across 30 countries, benefiting from strong margins and cash flow dynamics, along with extensive end-market experience and technical capabilities [7][10] - The company is expected to see growth driven by AI data center infrastructure and the adoption of 5G and cloud computing, supported by effective supply chain management [10][11] - However, Jabil also contends with a competitive environment and geopolitical tensions that may impact its margins [11] Financial Performance and Estimates - Celestica's 2025 sales and EPS estimates indicate a year-over-year growth of 20.6% and 43%, respectively, with a positive trend in EPS estimates over the past 60 days [12] - In contrast, Jabil's 2025 sales and EPS growth is projected at 0.9% and 10.6%, respectively, with a slight upward trend in EPS estimates [14] - Over the past year, Celestica has outperformed Jabil significantly, with a price increase of 244.1% compared to Jabil's 89.7% [15] Valuation Comparison - Jabil's shares trade at a lower price/earnings ratio of 18.73 compared to Celestica's 29.28, making Jabil appear more attractive from a valuation perspective [15] - Despite Jabil's favorable valuation metrics, Celestica has shown superior revenue and EPS growth, leading to a stronger overall investment case for Celestica at this time [17]

Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Focus**: GB200/300 rack shipments and forecasts Key Points 1. **Forecast Adjustment**: The forecast for GB200/300 racks has been raised to approximately 34,000 units, up from 30,000 units, primarily due to strong guidance from Hon Hai, which anticipates a 300% quarter-over-quarter growth in AI rack shipments for Q3 [2][9] 2. **Market Share**: Hon Hai is expected to account for about 57% of the market in 2025, with an estimated 19,500 racks shipped [2][18] 3. **Q3 Expectations**: Total racks for Q3 are now expected to reach 11,600, an increase from the previous estimate of 10,000 to 11,000 racks, driven by Hon Hai's positive guidance [3][9] 4. **Q4 Projections**: Q4 is projected to see further growth, with an estimated 15,700 racks, as demand for GB300 racks ramps up [4][9] 5. **GB200/300 Split**: The estimated mix for GB200/300 racks in 2025 is 87% for GB200 and 13% for GB300 [4][21] 6. **CY26 Forecast**: For CY26, assuming a carryover of approximately 2 million Blackwell chips, assemblers could potentially assemble over 60,000 racks, even if NVIDIA chip production remains flat year-over-year [5] Additional Insights 1. **ODM Preferences**: The order of preference among major ODMs is Hon Hai > Wistron > Quanta, indicating a strong confidence in Hon Hai's capabilities [1][5] 2. **Investor Sentiment**: Following Hon Hai's guidance, investor confidence has reportedly returned, suggesting a positive outlook for the sector [3] 3. **Capacity Transition**: Wistron is expected to increase shipments in Q4 after undergoing a capacity transition in Q3 [4] 4. **Exhibits**: Monthly and quarterly estimates for rack shipments by major ODMs are provided in the exhibits, showcasing detailed projections [2][10][13] Risks and Considerations 1. **Market Risks**: Potential risks include geopolitical developments affecting foreign investment, slower-than-expected AI server penetration, and fierce price competition in the mega data center segment [27][29] 2. **Growth Assumptions**: The forecasts are based on current assumptions and may be subject to change based on market conditions and company performance [5][9] This summary encapsulates the essential insights and projections regarding the GB200/300 rack market and the performance of key players within the Greater China Technology Hardware industry.

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Kimball Electronics (KE) Analysis - Kimball Electronics has experienced a significant price increase of 33.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 47.5% over the past 12 weeks, with a beta of 1.22, suggesting it moves 22% more than the market [5] - KE has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to KE earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - KE is currently trading at a Price-to-Sales ratio of 0.42, suggesting it is undervalued as investors pay only 42 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides KE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Performance - Q4 Fiscal 2025 - Net sales for Q4 were $381 million, a 12% decrease compared to Q4 of fiscal 2024[12, 14] - Excluding AT&M, the net sales decrease was 8%[14, 29] - Gross margin rate in Q4 was 8%, a 50 bps decline compared to Q4 of fiscal 2024[30, 32] - Adjusted selling & administrative expense totaled $10.8 million, a 23% reduction compared to $14 million in Q4 last year[37] - Adjusted operating income was $19.6 million, or 5.2% of net sales[41] Segment Performance - Medical sales were $107 million, up 5% compared to the same period last year, representing 28% of total company revenue[15, 17] - Automotive net sales were $184 million, a 13% decrease compared to Q4 last year, representing 48% of total company sales[19, 22] - Industrial net sales were $90 million, down 12% year-over-year excluding AT&M, representing 24% of total company sales[23, 25] Fiscal Year 2025 Highlights - Net sales totaled $1.487 billion, the 3rd highest annual revenue total in the company's history[58] - Inventory was down nearly 20% year-over-year[58] - Debt was down 50% within the fiscal year[58] Fiscal Year 2026 Guidance - Net sales are projected to be $1.350 - $1.450 billion, a 2% to 9% decrease compared to fiscal 2025[59] - Capital expenditures are expected to be $50 - $60 million[59]

Foxconn Hon Hai Technology Group signage during the Nvidia GPU Technology Conference (GTC) in San Jose, California, US, on Thursday, March 20, 2025. Taiwan's Foxconn, the world's largest contract electronics maker, reported Thursday that its second-quarter operating profit rose 27% year over year, on the strength of its growing artificial intelligence server business. Here's how Foxconn did in the second quarter of 2025 compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who ...