TTM Technologies (TTMI) Stock Forecast & Price Target

TTM Technologies Inc. has demonstrated robust financial performance, with Q4 revenues increasing by 14% year-over-year to reach $651 million, surpassing both internal guidance and consensus estimates. The company's EBITDA rose 35% year-over-year to $109 million, indicating strong operational efficiency and profitability. Additionally, the Aerospace & Defense (A&D) segment, which constitutes approximately 47% of Q4 revenues, displayed a healthy growth of 16% year-over-year, contributing to a record A&D program backlog of $1.56 billion.

TTM Technologies Inc. is facing a challenging financial environment marked by several declining metrics, including a reduced gross margin, which fell to 20.5%, down from 22.0% in the previous quarter, and a year-over-year decrease of 80 basis points. The company reported a decline in operating margin to 10.4%, reflecting the adverse impacts of a weakened demand environment and ongoing inventory destocking, particularly in its Medical, Industrial & Instrumentation segment. Additionally, the book-to-bill ratio decreased to 1.09 from 1.20, and the backlog has slightly contracted to $613 million, underscoring potential drawbacks in future revenue generation.