TTM Technologies Rises 28% in a Month: Should You Buy the Stock?

TTM Technologies (TTMI) shares have rallied, outperforming its sector, following strong Q1 2025 results, with revenue up 14% year-over-year to $648.7 million and EPS at $0.50, exceeding estimates. The company's growth is driven by robust performance in aerospace and defense (47% of revenue, up 15%), data center computing (21% of revenue, up 15%), and networking (up 53%), fueled by secular trends like increased defense spending and AI adoption. TTMI anticipates Q2 2025 revenue between $650-$690 million and EPS of $0.49-$0.55, indicating continued growth.

Analysis

TTM Technologies (TTMI) has demonstrated significant financial strength in its first-quarter 2025 results, with revenues climbing 14% year-over-year to $648.7 million, surpassing both consensus estimates by 4.3% and its own guidance range of $600-$640 million. The company reported a record first-quarter bottom line of 50 cents per share, a 28.21% beat against the Zacks Consensus Estimate and well above its projected $0.37-$0.43 range. This robust performance is attributed to strong growth across its key end markets: aerospace and defense, which contributed 47% of total revenues and grew 15% YoY, bolstered by a $1.55 billion backlog and increased defense spending; data center computing, accounting for 21% of revenues with 15% YoY growth driven by AI-related infrastructure investments; and a notable 53% YoY surge in its networking segment, fueled by renewed demand for switch-related products tied to AI infrastructure upgrades. The company's Q2 2025 outlook remains positive, projecting revenues of $650-$690 million, with the consensus estimate implying approximately 10.39% year-over-year growth. Non-GAAP earnings are projected at 49-55 cents per share for Q2, with the consensus mark suggesting a year-over-year rise of 33.3%. This outlook is supported by an increasing revenue share from its top five customers, which grew to 45% of total revenues in Q1 2025 from 42% a year earlier, highlighting deepening engagement with strategic partners. The recent 28% share price appreciation over the past month, significantly outperforming its sector's 8.3% return, reflects this positive operational momentum and favorable market positioning in high-growth areas.

Key Decisions for Investors

• Given TTM Technologies' robust Q1 2025 performance, strong growth in key sectors like aerospace, defense, and AI-driven data centers, and positive Q2 guidance, investors could view the company's outlook as favorable for continued growth.
• The increasing revenue concentration from top five customers to 45% of total revenues, while currently indicative of strong strategic partnerships, presents a factor to monitor for potential future dependency risks.
• Considering the stock's significant 28% appreciation in the past month, investors should carefully evaluate valuation and monitor for sustained execution against its promising outlook before initiating or adding to positions, particularly as the consensus earnings estimate for Q2 has already risen three cents in the past 30 days.