TTM Technologies (TTMI) Tops Q4 EPS by 14c, Revenues Beat; Offers Q1 EPS/Revenue Outlook

TTM Technologies (NASDAQ: TTMI) reported Q4 EPS of $0.41, $0.14 better than the analyst estimate of $0.27. Revenue for the quarter came in at $719.3 million versus the consensus estimate of $660.43 million.

Fourth Quarter 2019 Highlights

• Net sales were $719.3 million
• GAAP net income was $25.3 million, or $0.21 per diluted share
• Non-GAAP net income was $43.9 million, or $0.41 per diluted share, inclusive of $0.03 foreign exchange losses
• Cash flow from operations of $130.1 million

“For the fourth quarter, TTM continued to generate strong cash flow and delivered revenue and earnings above the previously guided range,” said Tom Edman, CEO of TTM. “The year over year growth we experienced in the aerospace and defense, cellular and computing end markets offset weakness in our other commercial end markets.”

"In 2019, we finished with strong results in Q4 and made progress on our strategy of diversification, differentiation and discipline. Specifically, we acquired differentiating technology with an important asset purchase from i3 Technologies, which enables us to manufacture products that require finer lines and smaller spacing for our aerospace and defense and commercial end markets broadening our technology offerings in North America. In addition, in early January, we announced the sale of our more seasonal and generally more volatile mobility business," continued Edman. “Finally, our financial discipline allowed us to generate significant year over year growth in cash flow despite year over year declines in revenues and profits.”

GUIDANCE:

TTM Technologies sees Q1 2020 EPS of $0.05-$0.11, versus the consensus of $0.17. TTM Technologies sees Q1 2020 revenue of $580-620 million, versus the consensus of $607.83 million.

Business Outlook Typically, in the first calendar quarter of every year, our China based factories are shut down over the Lunar New Year holiday. This year, due to government restrictions from the coronavirus. the shutdown has been extended approximately nine days to February 10th. Assuming our factories in the PRC can resume production on February 10th, TTM estimates that revenue for the first quarter of 2020 will be in the range of $580 million to $620 million, and non-GAAP net income will be in the range of $0.05 to $0.11 per diluted share, which includes approximately $0.09 negative impact from the additional nine days of closure. If the government extends the factory shutdown beyond February 10th, our financial results would be further negatively impacted.

For earnings history and earnings-related data on TTM Technologies (TTMI) click here.

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