If you’re interested in computer hardware shares, it’s important for you to know what’s been happening in the market today. TTM Technologies (NASDAQ:$TTMI) shares dropped as much as 22.5% this morning. It all started after the Costa Mesa, California-based company posted its second-quarter earnings report.
What Does This Mean?
Year over year, TTM Technologies top-line sales have increased 4.2% to land at $627 million. On the other side of the equation, adjusted earnings grew 15% to $0.31 per share. However, both figures did not meet Wall Street’s consensus estimates of $0.35 earnings per share on revenue close to $629 million.
What Does the Future Hold?
According to CEO Tom Edman, TTM Technologies organic year-over-year growth was consistent with other Q3 performances in recent years. Elaborating further, there were solid orders coming from automotive, computing, and defense markets.
In a prepared statement, Edman said: “Absent a foreign exchange loss due to the weakening dollar, operating results were toward the high end of guidance.”
With that being said, TTM Technologies guidance midpoints for Q3 came in below analysts’ expectations. Based on these targets, the company should report 1.3% year-over-year revenue growth and an 18% earnings reduction. According to Edman, smartphone developers are working on increasing their seasonal year-end output a tad bit later than normal. By doing so, this pushes a large number of expected orders into the next reporting period.
Many speculate that’s the real culprit behind today’s fall in share price. Even though moving orders into the next quarter isn’t normally an issue over the long haul, TTM Technologies cellular device clients are starting to push their luck in regards to getting ready for the holiday season on time. Therefore, for once, share prices falling on a couple delayed orders could actually end up making sense.
Featured Image: twitter
