On July 31, 2024, TTM Technologies Inc (TTMI, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that surpassed analyst expectations. TTM Technologies Inc, a leading global manufacturer of technology solutions including mission systems, RF components, and advanced printed circuit boards (PCB), reported significant year-over-year growth in both revenue and net income.
Company Overview
TTM Technologies Inc manufactures technology solutions, including mission systems, radio frequency (RF) components/RF microwave/microelectronic assemblies, quick-turn and technologically advanced printed circuit boards (PCB). The company is based in the United States and derives roughly half of its revenue domestically. The company organizes itself into two segments: printed circuit boards and RF&S Components. The printed circuit boards segment, which contributes the majority of revenue, offers a range of printed circuit boards as well as layout design and simulation, and testing services. TTM Technologies' products are used in manufacturing, networking, telecommunications, computing, aerospace, and medical fields.
Second Quarter 2024 Financial Highlights
TTM Technologies Inc reported net sales of $605.1 million for the second quarter of 2024, a notable increase from $546.5 million in the same period of 2023. This performance exceeded the analyst estimate of $579.78 million. The company's GAAP operating income rose to $39.0 million from $21.4 million in the previous year, while GAAP net income surged to $26.4 million, or $0.25 per diluted share, compared to $6.8 million, or $0.07 per diluted share, in Q2 2023.
Non-GAAP Financial Results
On a non-GAAP basis, TTM Technologies Inc reported net income of $40.1 million, or $0.39 per diluted share, surpassing the analyst estimate of $0.37 per share. Adjusted EBITDA for the quarter was $84.6 million, representing 14.0% of sales, compared to $74.7 million, or 13.7% of sales, in the second quarter of 2023.
“TTM reported Non-GAAP EPS that was above the guided range and demonstrated solid year on year growth due to higher revenues and improved operational execution. Revenues were above the guided range, representing the second consecutive quarter of year on year growth due to demand strength in our Aerospace and Defense and Data Center Computing end markets, the latter being driven by generative AI,” said Tom Edman, CEO of TTM.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $605.1 million | $546.5 million |
| GAAP Operating Income | $39.0 million | $21.4 million |
| GAAP Net Income | $26.4 million | $6.8 million |
| Non-GAAP Net Income | $40.1 million | $33.0 million |
| Adjusted EBITDA | $84.6 million | $74.7 million |
Balance Sheet and Cash Flow
As of July 1, 2024, TTM Technologies Inc reported cash and cash equivalents of $446.2 million, slightly down from $450.2 million at the beginning of the year. The company's total assets stood at $3.34 billion, with total liabilities and equity also at $3.34 billion. Notably, TTM generated $41.9 million in cash flow from operations during the quarter, enabling stock repurchases and maintaining a solid balance sheet with a net leverage ratio of 1.4x.
Operational Highlights and Outlook
TTM Technologies Inc continues to benefit from strong demand in its Aerospace and Defense and Data Center Computing end markets. The company also announced the refinancing of its Term Loan B, which is expected to reduce annual interest expenses by approximately $1.7 million.
For the third quarter of 2024, TTM Technologies Inc estimates revenues to be in the range of $580 million to $620 million, with non-GAAP net income projected to be between $0.37 and $0.43 per diluted share.
TTM Technologies Inc's strong performance in Q2 2024, driven by higher revenues and improved operational execution, positions the company well for continued growth. Investors and stakeholders can access the full earnings report and additional details through the company's 8-K filing.
Explore the complete 8-K earnings release (here) from TTM Technologies Inc for further details.
