TTM Technologies, Inc. (NASDAQ:TTMI) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Shareholders of TTM Technologies, Inc. (NASDAQ:TTMI) will be pleased this week, given that the stock price is up 14% to US$16.12 following its latest full-year results. TTM Technologies reported revenues of US$2.2b, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.18 per share, which were slightly larger than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for TTM Technologies
Following the latest results, TTM Technologies' four analysts are now forecasting revenues of US$2.33b in 2024. This would be an okay 4.5% improvement in revenue compared to the last 12 months. TTM Technologies is also expected to turn profitable, with statutory earnings of US$0.67 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.35b and earnings per share (EPS) of US$0.75 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
The consensus price target held steady at US$19.19, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TTM Technologies, with the most bullish analyst valuing it at US$22.00 and the most bearish at US$15.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TTM Technologies shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting TTM Technologies' growth to accelerate, with the forecast 4.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TTM Technologies is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TTM Technologies. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple TTM Technologies analysts - going out to 2025, and you can see them free on our platform here.
You can also view our analysis of TTM Technologies' balance sheet, and whether we think TTM Technologies is carrying too much debt, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
