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Investing.com -- TT Electronics ’ (LON:TTG) shares fell more than 6% after the company announced a delay in its full-year 2024 results and lowered its 2025 earnings outlook.
As per analysts at RBC Capital Markets, TT Electronics expects its 2025 operating profit to be between £40 million and £46 million, below the market consensus of £49.3 million.
This represents a downside risk of 7% to 19% compared to previous expectations. The company also confirmed a £35 million non-cash impairment to goodwill and fixed assets, along with a prior year adjustment of up to £6 million related to its Cleveland site.
Additionally, TT Electronics no longer expects to reach its 12% margin target in 2026. RBC analysts noted that while this may disappoint investors, they had already projected a lower 2026 margin of 11%.
Despite the setback, the company reported stronger-than-expected free cash flow for 2024, and its full-year operating profit is expected to be in line with prior guidance. RBC maintains an "outperform" rating on the stock with a price target of 160p.