Yahoo Finance TTM Technologies, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
TTM Technologies, Inc. (NASDAQ:TTMI) just released its latest annual results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$2.7b, some 2.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.39, 60% ahead of expectations. Following the result, 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
Taking into account the latest results, TTM Technologies's six analysts currently expect revenues in 2020 to be US$2.70b, approximately in line with the last 12 months. Statutory earnings per share are expected to rise 8.6% to US$0.43. Yet prior to the latest earnings, analysts had been forecasting revenues of US$2.65b and earnings per share (EPS) of US$0.54 in 2020. So there's definitely been a decline in analyst sentiment after the latest results, noting the large cut to new EPS forecasts.
The consensus price target held steady at US$17.44, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic TTM Technologies analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$17.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. We would highlight that TTM Technologies's revenue growth is expected to slow, with forecast 0.4% increase next year well below the historical 11%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 5.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect TTM Technologies to grow slower than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TTM Technologies. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that TTM Technologies's revenues are expected to perform worse than the wider market. The consensus price target held steady at US$17.44, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple TTM Technologies analysts - going out to 2021, and you can see them free on our platform here.
You can also see whether TTM Technologies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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