Why TTM Technologies Stock Plunged This Week
A new high-water mark for Q3 revenue failed to impress investors.
TTM Technologies stock plummeted 21.3% this week after reporting a 10% revenue miss in its data center division and facing increasing supply chain delays. The company's stock fell from $94.95 on Friday, Oct. 16 to $73.89 on Thursday, Oct. 22, while the S&P 500 and Nasdaq-100 showed minimal movement. Despite reporting record Q3 revenue of $1.20 billion, up 59.9% year-over-year, adjusted EPS of $1.46 surpassed expectations.
However, supply chain delays for critical components stretched to 24 weeks, pushing the data center segment 10% below internal targets. Management announced a $650 million cash deal to acquire Ophir Optics and a $400 million manufacturing expansion in Asia, leading to a fourth-quarter revenue guidance of $1.42 billion to $1.44 billion, slightly below consensus.
Rising debt from recent acquisitions adds $20 million in quarterly interest expenses, intensifying capital intensity. With a P/E ratio of 32.4, investors are closely monitoring how quickly TTM Technologies can reduce component lead times and integrate its acquisitions. The company's balance sheet includes $507.9 million in cash and short-term investments against $1.1 billion in total debt.
The next significant earnings report is expected on Feb. 3, 2027, alongside the closing of the Ophir Optics acquisition.
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