Electronic components distributor Avnet (NASDAQGS:AVT) will be reporting results this Wednesday before market open. Here’s what to look for.
Avnet beat analysts’ revenue expectations last quarter, reporting revenues of $7.12 billion, up 33.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations.
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 33.6% year on year, improving from its flat revenue 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 Q2 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 31%, beating analysts’ expectations by 16.6%, and Connection reported revenues up 12.4%, topping estimates by 11.3%. Connection’s stock price was unchanged following the results.
Read our full analysis of TD SYNNEX’s results here and Connection’s results here.
There has been positive sentiment among investors in the it distribution & solutions segment, with share prices up 5.3% on average over the last month. Avnet is up 7.8% during the same time and is heading into earnings with an average analyst price target of $89.50 (compared to the current share price of $88.90).
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