Electronic components distributor Avnet (NASDAQGS:AVT) will be announcing earnings results this Wednesday morning. Here’s what to expect.
Avnet beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $5.62 billion, flat year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.
Is Avnet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Avnet’s revenue to grow 2.2% year on year to $5.73 billion, a reversal from the 11.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Avnet has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Avnet’s peers in the tech hardware & electronics 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 6.6%, beating analysts’ expectations by 3.5%, and Amphenol reported revenues up 53.4%, topping estimates by 10.9%. TD SYNNEX traded up 9.5% following the results while Amphenol was also up 8.8%.
Read our full analysis of TD SYNNEX’s results here and Amphenol’s results here.
Investors in the tech hardware & electronics segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Avnet is down 1.1% during the same time and is heading into earnings with an average analyst price target of $52.75 (compared to the current share price of $51.14).
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