TTM Technologies Soars on AI-Driven Data Center Demand

TTM Technologies has delivered a stunning quarterly performance that surpassed market expectations, with both revenue and earnings demonstrating remarkable strength. The company's shares are experiencing substantial momentum, fueled primarily by surging demand from data center markets embracing generative artificial intelligence.

The company's bottom line showed impressive improvement, with adjusted quarterly earnings climbing to $71 million, or $0.67 per share. This represents a significant jump from the $0.55 per share reported in the same quarter last year and comfortably exceeded the consensus estimate of $0.60 per share.

Key financial metrics underscore this robust performance:
* GAAP net income reached $53.1 million ($0.50 per share)
* Adjusted EBITDA stood at $120.9 million, representing a 16.1% margin
* Operating cash flow generation was strong at $141.8 million

Record Revenue Driven by Multiple Sectors

TTM posted third-quarter net revenue of $752.7 million, marking a 22% year-over-year increase that substantially outpaced analyst projections of $712 million. This record performance was largely propelled by data center and network markets experiencing unprecedented demand from generative AI applications.

Should investors sell immediately? Or is it worth buying TTM?

The company's growth was broad-based across several key segments:
* Aerospace and defense revenues grew 20%, now representing a record 45% of total revenue
* Medical technology and industrial electronics both achieved double-digit annual growth
* Data center computing witnessed an AI-fueled demand surge

Future Outlook and Strategic Direction

Looking ahead to the fourth quarter, TTM anticipates revenue between $730 million and $770 million, with adjusted earnings per share projected in the range of $0.64 to $0.70. The company's manufacturing expansions in Penang and Syracuse are progressing according to schedule, while margins at the Penang facility are already showing improvement.

Under the leadership of new CEO Edwin Roks, the company maintains its focus on both continuity and innovation. Market analysts remain optimistic about TTM's prospects, with the median price target of $62.50 sitting above the current trading level of $59.21. The majority of research recommendations fall into either the "Strong Buy" or "Buy" categories.