Electronic components distributor Avnet (NASDAQGS:AVT) will be announcing earnings results this Wednesday before market hours. Here’s what to look for.
Avnet beat analysts’ revenue expectations last quarter, reporting revenues of $6.32 billion, up 11.6% year on year. It was a stunning 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, the market is expecting Avnet’s revenue to grow 21.4% year on year, a reversal from the 6% decrease 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 to stay the course heading into earnings. Avnet rarely misses Wall Street’s revenue estimates.
Looking at Avnet’s peers in the tech hardware & electronics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. TD SYNNEX delivered year-on-year revenue growth of 18.1%, beating analysts’ expectations by 9.5%, and Jabil reported revenues up 23.1%, topping estimates by 6.8%. TD SYNNEX traded up 16.3% following the results while Jabil was also up 1.1%.
Read our full analysis of TD SYNNEX’s results here and Jabil’s results here.
There has been positive sentiment among investors in the tech hardware & electronics segment, with share prices up 13.1% on average over the last month. Avnet is up 34.2% during the same time and is heading into earnings with an average analyst price target of $66 (compared to the current share price of $78.63).
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