Here’s What Analysts Think Will Happen Next

TTM Technologies, Inc. (NASDAQ:TTMI) just released its latest second-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.4% to hit US$605m. TTM Technologies also reported a statutory profit of US$0.25, which was an impressive 50% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for TTM Technologies

After the latest results, the four analysts covering TTM Technologies are now predicting revenues of US$2.40b in 2024. If met, this would reflect a reasonable 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 432% to US$0.89. In the lead-up to this report, the analysts had been modelling revenues of US$2.37b and earnings per share (EPS) of US$0.70 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

The consensus price target rose 13% to US$24.81, suggesting that higher earnings estimates flow through to the stock’s valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values TTM Technologies at US$27.25 per share, while the most bearish prices it at US$24.00. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s clear from the latest estimates that TTM Technologies’ rate of growth is expected to accelerate meaningfully, with the forecast 6.9% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.2% per year. TTM Technologies is expected to grow at about the same rate as its industry, so it’s not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TTM Technologies following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for TTM Technologies going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for TTM Technologies that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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