TTM Set to Report Q2 Earnings: How Should You Play the Stock?

TTM Technologies (TTMI) forecasts Q2 2025 revenues of $650-$690 million and non-GAAP EPS of $0.49-$0.55, with consensus estimates at $667.99 million (10.39% Y/Y growth) and $0.52 (33.33% Y/Y growth), respectively. Performance is bolstered by a $1.55 billion aerospace and defense backlog and robust demand for advanced PCBs driven by AI infrastructure buildouts. However, challenges persist from tariff uncertainties, weakness in the automotive sector due to inventory corrections, and margin pressure from new Penang facility start-up costs. Despite TTMI holding a Zacks Rank #1, its 0.00% Earnings ESP indicates the Zacks model does not currently predict an earnings beat.

Analysis

TTM Technologies heads into its second-quarter 2025 earnings with robust guidance, projecting revenues of $650-$690 million and non-GAAP EPS between $0.49 and $0.55. These figures align with consensus estimates that imply significant year-over-year growth of 10.39% in revenue and 33.33% in earnings. The company's performance is underpinned by powerful secular tailwinds, including a substantial $1.55 billion backlog in its aerospace and defense segment and accelerating demand for advanced Printed Circuit Boards driven by AI infrastructure projects. However, these positive drivers are counterbalanced by significant headwinds. Weakness in the automotive end market, stemming from ongoing inventory corrections, is expected to subdue volumes. Furthermore, near-term margins face probable compression from start-up costs at the new Penang facility and potential cost pressures related to tariff uncertainties. While the company holds a Zacks Rank #1 (Strong Buy) and has a history of surpassing earnings estimates by an average of 17.65% over the last four quarters, the model's neutral Earnings ESP of 0.00% tempers expectations for an earnings beat, creating a mixed technical picture ahead of the announcement.

Key Decisions for Investors

• Investors should weigh the company's exposure to strong long-term growth drivers in AI and defense against the cyclical weakness in the automotive sector and identifiable near-term margin pressures.
• It is critical to monitor management's commentary in the upcoming earnings call for specific updates on the automotive inventory correction timeline and the projected impact of Penang facility start-up costs on future profitability.
• Given the conflicting signals between strong fundamental growth and a neutral 0.00% Earnings ESP, a cautious stance may be warranted pre-earnings, as any potential stock price weakness following the report could present a more attractive entry point for long-term positions.