Electronic components distributor Avnet (NASDAQGS:AVT) will be announcing earnings results this Wednesday before the bell. Here’s what you need to know.
Avnet beat analysts’ revenue expectations last quarter, reporting revenues of $8.30 billion, up 47.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.
Is Avnet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Avnet’s revenue to grow 56.3% year on year, improving from the 5.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Avnet has a history of exceeding Wall Street’s expectations.
Looking at Avnet’s peers in the it distribution & solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 37.7%, beating analysts’ expectations by 13.5%, and Connection reported revenues up 23.3%, topping estimates by 13%. TD SYNNEX traded down 8.6% following the results while Connection was also down 1%.
Read our full analysis of TD SYNNEX’s results here and Connection’s results here.
Investors in the it distribution & solutions segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Avnet is down 18.8% during the same time and is heading into earnings with an average analyst price target of $106.25 (compared to the current share price of $86.22).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
