Zacks Research Issues Optimistic Outlook for Avnet Earnings

Key Points

• Zacks Research raised its outlook for Avnet, boosting Q1 2027 EPS estimates to $1.53 from $1.37 and maintaining a Strong-Buy rating. It also projected higher earnings across later quarters and fiscal 2027–2028.
• Avnet recently beat quarterly expectations, reporting $1.48 EPS on revenue of $7.12 billion versus estimates of $1.33 EPS and $6.45 billion. Revenue rose 34% year over year, and the company guided Q4 2026 EPS to $1.70–$1.80.
• Wall Street sentiment is mixed but generally positive, with the consensus rating at Moderate Buy and an average price target of $89.00. Shares were trading near a 52-week high at $86.67, while the company also pays a quarterly dividend yielding 1.6%.

Avnet, Inc. (NASDAQ:AVT - Free Report) - Research analysts at Zacks Research upped their Q1 2027 earnings per share (EPS) estimates for shares of Avnet in a report released on Wednesday, May 13th. Zacks Research analyst Team now expects that the company will post earnings of $1.53 per share for the quarter, up from their previous estimate of $1.37. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Avnet's current full-year earnings is $4.92 per share. Zacks Research also issued estimates for Avnet's Q2 2027 earnings at $1.74 EPS, Q3 2027 earnings at $1.55 EPS, Q4 2027 earnings at $1.83 EPS, FY2027 earnings at $6.65 EPS, Q1 2028 earnings at $1.85 EPS, Q2 2028 earnings at $1.89 EPS, Q3 2028 earnings at $1.66 EPS and FY2028 earnings at $7.19 EPS.

AVT has been the topic of a number of other reports. Wells Fargo & Company upped their price target on shares of Avnet from $60.00 to $70.00 and gave the stock an "underweight" rating in a research note on Thursday, April 30th. Bank of America upgraded shares of Avnet from an "underperform" rating to a "neutral" rating and raised their price objective for the company from $66.00 to $96.00 in a research note on Wednesday. Raymond James Financial reissued a "strong-buy" rating and set a $95.00 price objective on shares of Avnet in a report on Thursday, April 30th. Wall Street Zen lowered shares of Avnet from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 10th. Finally, Weiss Ratings cut shares of Avnet from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, March 19th. Two investment analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $89.00.

Avnet Trading Up 0.5%

NASDAQ:AVT opened at $86.67 on Friday. Avnet has a 1 year low of $44.25 and a 1 year high of $87.46. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 2.01. The stock has a fifty day moving average price of $69.10 and a two-hundred day moving average price of $58.78. The stock has a market capitalization of $7.11 billion, a price-to-earnings ratio of 33.72, a PEG ratio of 0.62 and a beta of 1.09.

Avnet (NASDAQ:AVT - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.33 by $0.15. Avnet had a return on equity of 7.07% and a net margin of 0.86%.The business had revenue of $7.12 billion during the quarter, compared to analysts' expectations of $6.45 billion. During the same period last year, the firm earned $0.84 EPS. The company's quarterly revenue was up 34.0% compared to the same quarter last year. Avnet has set its Q4 2026 guidance at 1.700-1.800 EPS.

Avnet Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were given a $0.35 dividend. The ex-dividend date was Wednesday, March 4th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.6%. Avnet's dividend payout ratio (DPR) is currently 54.47%.

Insider Activity

In other news, CEO Philip R. Gallagher sold 23,920 shares of Avnet stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $82.92, for a total transaction of $1,983,446.40. Following the completion of the transaction, the chief executive officer owned 145,003 shares of the company's stock, valued at $12,023,648.76. The trade was a 14.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Avnet

Several hedge funds have recently added to or reduced their stakes in the business. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Avnet in the first quarter valued at about $3,783,000. Renaissance Technologies LLC increased its stake in shares of Avnet by 420.3% during the 1st quarter. Renaissance Technologies LLC now owns 82,200 shares of the company's stock worth $5,065,000 after purchasing an additional 66,400 shares in the last quarter. Caxton Associates LLP increased its stake in shares of Avnet by 0.6% during the 1st quarter. Caxton Associates LLP now owns 37,858 shares of the company's stock worth $2,333,000 after purchasing an additional 244 shares in the last quarter. Inceptionr LLC acquired a new position in shares of Avnet during the 1st quarter worth approximately $762,000. Finally, Bank of Nova Scotia raised its position in shares of Avnet by 220.3% during the 1st quarter. Bank of Nova Scotia now owns 104,100 shares of the company's stock worth $6,415,000 after purchasing an additional 71,600 shares during the last quarter. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

About Avnet

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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