TTM Technologies Shares Rise 3.41% in Premarket Trading

TTM Technologies Inc. (NASDAQ: TTMI ) stock rebounded in premarket trading Friday after plunging nearly 28% Thursday despite stronger-than-expected third-quarter earnings and raised guidance. The selloff came as investors weighed data center project delays, rising acquisition-related borrowing costs and a weaker-than-expected 2027 revenue outlook. According to Pro, Thursday’s sharp decline may also have reflected profit-taking following a rally fueled by strong demand for artificial intelligence and defense technologies.

Third-Quarter Earnings Beat Estimates TTM reported adjusted earnings of $1.46 per share, beating analysts’ consensus estimate of $1.25. Revenue surged 60% year over year to $1.204 billion, exceeding the $1.130 billion estimate. Non-GAAP net income more than doubled to $157.8 million from $71 million a year earlier. Adjusted EBITDA climbed to $242.3 million from $120.9 million, with a margin of 20.1%.

TTM Raises 2026 Guidance, Sets 2027 Targets TTM raised its full-year 2026 revenue forecast to $4.47 billion-$4.49 billion from $4 billion, above Wall Street’s estimate of $4.413 billion. The company also increased its adjusted earnings outlook to $4.97-$5.03 per share, exceeding the $4.81 consensus estimate. For the fourth quarter, TTM expects revenue of $1.42 billion-$1.44 billion, compared with analysts’ estimate of $1.433 billion. Adjusted earnings are projected at $1.77-$1.83 per share, versus the $1.81 estimate.

For 2027, TTM projected revenue of $6.5 billion-$6.75 billion. The company also forecast adjusted earnings of $8.10-$8.90 per share, compared with Wall Street’s $7.24 estimate. See More: Top Quality Stocks Data Center Delays Raise Concerns TTM’s Data Center and Networking segment accounted for 41% of third-quarter revenue, with sales jumping 115% year over year. However, the business performed about 10% below the company’s previous guidance, raising questions about the pace of data center expansion.

During the earnings call, CEO Edwin Roks attributed the shortfall to customer project timing rather than manufacturing problems. He said two of the company’s three initial programs were performing well, while the third continued to ramp up. Meanwhile, some material lead times have doubled from approximately 12 weeks to 24 weeks or longer, adding uncertainty to production schedules. $650 Million Ophir Deal Expands Acquisition Strategy TTM also plans to acquire Ophir Optics from MKS Inc.

(NASDAQ: MKSI ) for approximately $650 million in cash. The purchase values Ophir at about 10.3 times expected fiscal 2027 adjusted EBITDA, excluding potential synergies. TTM expects the acquisition to immediately boost its adjusted EBITDA margin and non-GAAP diluted earnings per share. The transaction is expected to close in the second quarter of 2027.

The company plans to finance the deal and its previously announced $400 million capacity expansion in Asia through existing cash, future cash flow and borrowings under its revolving credit facility. TTM ended Sept. 28 with $876.3 million in cash and cash equivalents. Rising Debt Costs Could Pressure Earnings The company’s acquisition strategy is also increasing financing costs.

CFO Dan Boehle said debt associated with the Epiq acquisition and planned Ophir purchase would add approximately $20 million in quarterly interest expenses, weighing on earnings per share. Following the Epiq acquisition, TTM’s net leverage ratio stood at 2.8 times pro forma adjusted EBITDA. However, management expects leverage to decline to its target range of 1.5 to 2 times by the anticipated closing of the Ophir transaction. The higher borrowing costs, combined with data center project delays and a 2027 revenue outlook below expectations, have raised concerns despite the company’s strong third-quarter performance.

TTMI Price Action: TTM Technologies shares were up 3.41% at $76.41 during premarket trading on Friday, according to Pro data. Read Also: Earnings Volatility Watch: Bloom Energy and Other 11 Stocks Are Priced For Double-Digit Swings