Avnet (NASDAQ:AVT) Announces Quarterly Earnings Results

Key Points

• Avnet significantly exceeded quarterly expectations: Revenue rose 47.7% year over year to $8.30 billion, while earnings reached $2.28 per share versus the roughly $1.80 consensus estimate.
• Management issued strong fiscal 2027 first-quarter guidance, projecting $9.0 billion–$9.3 billion in sales and adjusted EPS of $2.80–$2.90, supported by broad demand recovery, improving book-to-bill ratios and solid backlog visibility.
• Growth risks remain: Memory pricing contributed materially to sales and gross-profit growth, while accelerating expansion is expected to consume cash through higher inventory and receivables; analysts’ consensus rating remains “Hold.”

Avnet (NASDAQ:AVT - Get Free Report) posted its earnings results on Wednesday. The company reported $2.28 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.48, FiscalAI reports. Avnet had a return on equity of 7.07% and a net margin of 0.86%.The company had revenue of $8.30 billion for the quarter, compared to analyst estimates of $7.56 billion. During the same period last year, the company earned $0.81 earnings per share. The business's revenue was up 47.7% compared to the same quarter last year. Avnet updated its Q1 2027 guidance to 2.800-2.900 EPS.

Here are the key takeaways from Avnet's conference call:

• Record fourth-quarter performance: Avnet reported $8.3 billion in sales, up 48% year over year, with adjusted EPS of $2.28 and adjusted operating margin of 3.8%, both above guidance.
• Management cited a broadening demand recovery, with all regions and end markets showing improvement, book-to-bill ratios above one, extending lead times, and healthy backlog visibility into fiscal 2027.
• Operating leverage continued to expand margins, while Farnell’s operating margin rose to 9%; management expects Farnell to reach double-digit margins before the end of fiscal 2027 and SG&A as a percentage of gross profit to fall below 60%.
• Avnet guided first-quarter fiscal 2027 sales to $9.0 billion-$9.3 billion and adjusted EPS to $2.80-$2.90, implying roughly 10% sequential sales growth at the midpoint, primarily from higher unit volumes.
• Memory pricing accounted for roughly one-third of sales and gross-profit-dollar growth, while broader component price increases are emerging; the company also expects to use cash to fund inventory and receivables as growth accelerates, despite leverage improving to 3.2 times.

Avnet Stock Performance

Shares of Avnet stock traded up $4.69 during midday trading on Wednesday, hitting $97.22. The company had a trading volume of 2,723,022 shares, compared to its average volume of 1,238,469. Avnet has a 1-year low of $44.25 and a 1-year high of $98.67. The business's 50 day simple moving average is $87.72 and its two-hundred day simple moving average is $74.70. The stock has a market cap of $7.97 billion, a PE ratio of 37.83, a P/E/G ratio of 0.28 and a beta of 1.09. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.01 and a quick ratio of 1.05.

Avnet Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Wednesday, June 3rd were given a $0.35 dividend. This represents a $1.40 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Wednesday, June 3rd. Avnet's dividend payout ratio is currently 54.47%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Weiss Ratings downgraded Avnet from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, July 28th. Zacks Research cut Avnet from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 30th. Truist Financial increased their price target on Avnet to $95.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Bank of America raised shares of Avnet from an "underperform" rating to a "neutral" rating and lifted their price target for the company from $66.00 to $96.00 in a research report on Wednesday, May 13th. Finally, Wells Fargo & Company boosted their price objective on shares of Avnet from $70.00 to $72.00 and gave the stock an "underweight" rating in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $89.50.

Avnet News Summary

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Fourth-quarter results exceeded expectations. Avnet reported adjusted earnings of $2.28 per share, versus the $1.76–$1.80 analyst consensus, while revenue reached $8.30 billion compared with expectations of approximately $7.56 billion. Revenue increased 47.7% from the prior-year quarter, and earnings rose sharply from $0.81 per share. Avnet Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Fiscal 2027 first-quarter guidance was well above Wall Street forecasts. Avnet projected revenue of $9.0 billion to $9.3 billion and earnings of roughly $2.80 to $2.90 per share, compared with consensus estimates of $7.6 billion in revenue and $1.84 EPS. The outlook suggests momentum is continuing into the new fiscal year. Avnet Earnings Report
• Positive Sentiment: Growth was broad enough to support the upbeat reaction. Fiscal 2026 sales totaled $27.6 billion, up 25% year over year. Fourth-quarter Electronic Components sales were $7.8 billion, while Farnell contributed $500.1 million; the company also returned capital through dividends and share repurchases. Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Investors will likely focus on whether Avnet can sustain the unusually strong growth and convert higher sales into improved profitability, given the reported net margin of only 0.86%.
• Negative Sentiment: Recent insider activity showed sales by the chief executive, chief financial officer, and another senior executive. These transactions may temper sentiment, although they do not offset the earnings and guidance beats. Avnet Reports Record Fourth-Quarter Sales

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Summit Securities Group LLC acquired a new stake in Avnet during the fourth quarter worth about $28,000. BOKF NA lifted its position in shares of Avnet by 1,116.7% in the 3rd quarter. BOKF NA now owns 584 shares of the company's stock worth $31,000 after acquiring an additional 536 shares during the period. Kestra Advisory Services LLC acquired a new stake in shares of Avnet during the 4th quarter worth approximately $90,000. EverSource Wealth Advisors LLC increased its position in shares of Avnet by 81.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,918 shares of the company's stock valued at $102,000 after purchasing an additional 863 shares during the period. Finally, Quarry LP increased its position in shares of Avnet by 6,080.5% during the fourth quarter. Quarry LP now owns 2,534 shares of the company's stock valued at $122,000 after purchasing an additional 2,493 shares during the period. Institutional investors own 95.78% of the company's stock.

Avnet Company Profile

Avnet, Inc NASDAQ: AVT is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet's offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.

Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.

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