Highly specialized tech components maker TTM Technologies (NASDAQ: TTMI) was a highly desirable stock to own on Thursday. Investors piled into the company’s equity after it published very encouraging first-quarter results that left analyst estimates in the dust. TTM stock closed the day more than 15% higher.
Many of those investors couldn’t wait to get their hands on TTM shares that day, as the company unveiled those solid results just after market close on Wednesday. It revealed that net sales ballooned by 30% year over year to $846 million, setting a fresh all-time company record.
Image source: Getty Images.
The tech components maker had a record-busting first quarter.
Highly specialized tech components maker TTM Technologies (TTMI +15.07%) was a highly desirable stock to own on Thursday. Investors piled into the company’s equity after it published very encouraging first-quarter results that left analyst estimates in the dust. TTM stock closed the day more than 15% higher.
One for the record books
Many of those investors couldn’t wait to get their hands on TTM shares that day, as the company unveiled those solid results just after market close on Wednesday. It revealed that net sales ballooned by 30% year over year to $846 million, setting a fresh all-time company record.
Image source: Getty Images.
Another historic high was set by net income not under generally accepted accounting principles (GAAP). This rocketed 52% higher to just over $80 million, or $0.75 per share.
Analysts weren’t expecting the tech company to hit these peaks. Their consensus estimates for sales and non-GAAP (adjusted) profitability were $787 million and $0.67 per share, respectively.
In its earnings release, TTM attributed the considerable gains to continued and strong demand from the data center and networking end markets. This, in turn, comes from the sustained momentum of build-outs to accommodate artificial intelligence (AI) technology.
TTM Technologies
Today’s Change
(15.07%) $20.72
Current Price
$158.22
Crushing it with guidance, too
For its current (second) quarter, TTM is guiding for net sales of $930 million to $970 million, and adjusted net income per share ranging from $0.82 to $0.88. These trounce the average pundit projections, which are $822.5 million and $0.74, respectively.
For the full year, it wrote only that growth in the second half of the year will match that of the first half.
TTM is one of a clutch of previously under-the-radar component suppliers feeding the near-frenzied expansion of AI capabilities. I see little reason why demand for AI infrastructure should wane anytime soon, so this stock feels like a very solid play on this long-term trend.
