Zacks Research Issues Optimistic Outlook for Avnet Earnings

Key Points

• Zacks Research sharply raised Avnet’s earnings forecasts and reiterated a “Strong-Buy” rating, lifting Q1 2027 EPS estimates to $2.85 from $1.53 and projecting FY2027 EPS of $9.00.
• Avnet recently exceeded quarterly expectations, reporting $2.28 EPS and $8.30 billion in revenue, with revenue up 47.7% year over year. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $93.25.
• Avnet increased its quarterly dividend to $0.37 per share from $0.35, equating to an annualized payout of $1.48 and a 1.7% yield; the dividend is payable September 23 to shareholders of record on September 9.

Avnet, Inc. (NASDAQ:AVT - Free Report) - Research analysts at Zacks Research boosted their Q1 2027 EPS estimates for Avnet in a report released on Wednesday, August 19th. Zacks Research analyst Team now expects that the company will earn $2.85 per share for the quarter, up from their prior forecast of $1.53. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Avnet's current full-year earnings is $9.66 per share. Zacks Research also issued estimates for Avnet's Q2 2027 earnings at $2.16 EPS, Q3 2027 earnings at $1.96 EPS, FY2027 earnings at $9.00 EPS, Q1 2028 earnings at $3.14 EPS, Q2 2028 earnings at $2.35 EPS, Q3 2028 earnings at $2.06 EPS, Q4 2028 earnings at $2.23 EPS and FY2028 earnings at $9.79 EPS.

Other analysts have also issued research reports about the company. Bank of America upgraded Avnet from an "underperform" rating to a "neutral" rating and increased their price target for the company from $66.00 to $96.00 in a report on Wednesday, May 13th. Raymond James Financial reissued a "strong-buy" rating and issued a $95.00 target price on shares of Avnet in a research note on Thursday, April 30th. Wells Fargo & Company upped their price target on shares of Avnet from $70.00 to $72.00 and gave the company an "underweight" rating in a report on Monday, July 20th. Truist Financial boosted their target price on Avnet from $95.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Finally, Wall Street Zen raised Avnet from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 25th. Two analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $93.25.

Avnet Trading Down 1.6%

AVT opened at $86.89 on Friday. The stock has a 50-day moving average of $89.39 and a 200 day moving average of $78.19. The company has a current ratio of 1.78, a quick ratio of 0.97 and a debt-to-equity ratio of 0.49. Avnet has a 12 month low of $44.25 and a 12 month high of $100.00. The firm has a market cap of $7.13 billion, a P/E ratio of 21.78, a P/E/G ratio of 0.29 and a beta of 1.09.

Avnet (NASDAQ:AVT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $2.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.80 by $0.48. Avnet had a net margin of 1.21% and a return on equity of 9.57%. The firm had revenue of $8.30 billion for the quarter, compared to the consensus estimate of $7.56 billion. During the same period in the previous year, the firm posted $0.81 EPS. The business's quarterly revenue was up 47.7% on a year-over-year basis. Avnet has set its Q1 2027 guidance at 2.800-2.900 EPS.

Avnet Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 23rd. Stockholders of record on Wednesday, September 9th will be paid a dividend of $0.37 per share. This is an increase from Avnet's previous quarterly dividend of $0.35. This represents a $1.48 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Wednesday, September 9th. Avnet's payout ratio is 35.09%.

Insider Buying and Selling at Avnet

In related news, CEO Philip R. Gallagher sold 51,900 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $98.46, for a total value of $5,110,074.00. Following the completion of the transaction, the chief executive officer owned 168,923 shares of the company's stock, valued at $16,632,158.58. The trade was a 23.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 1.90% of the stock is owned by insiders.

Institutional Trading of Avnet

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in Avnet during the 2nd quarter worth approximately $916,146,000. Pzena Investment Management LLC acquired a new position in Avnet during the 2nd quarter valued at approximately $277,153,000. Norges Bank purchased a new position in shares of Avnet in the fourth quarter worth $62,393,000. Bank of America Corp DE purchased a new position in shares of Avnet in the second quarter worth $91,844,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Avnet during the second quarter worth $74,897,000. Hedge funds and other institutional investors own 95.78% of the company's stock.

Key Headlines Impacting Avnet

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Zacks Research raised earnings estimates across 2027 and 2028 and reiterated a “Strong-Buy” rating. Estimates increased for every reported period, including Q1 2027 EPS to $2.85 from $1.53, FY2027 EPS to $9.00 from $6.65, and FY2028 EPS to $9.79 from $7.19. The revisions imply stronger expected profitability and provide a bullish catalyst for Avnet shares.
• Positive Sentiment: The firm also projected FY2029 EPS of $10.15, extending the longer-term earnings growth outlook. The current-year consensus remains $9.66 per share, while Avnet’s prior quarter significantly exceeded expectations with $2.28 EPS on $8.30 billion in revenue.
• Positive Sentiment: Avnet increased its quarterly dividend by 5.7% to $0.37 per share. Shareholders of record on September 9 will receive the dividend on September 23. The annualized payout is approximately $1.48 per share, representing a yield of about 1.7%. The increase signals confidence in cash generation and enhances the stock’s shareholder-return appeal. Avnet Increases Quarterly Dividend by 5.7%
• Positive Sentiment: Recent commentary has characterized Avnet as attractive on forward valuation despite appearing expensive based on prior-year results. A Zacks value-stock article also included AVT among stocks considered compelling amid geopolitical uncertainty. Avnet: Expensive On The Last Year, Cheap On The Next One
• Neutral Sentiment: The dividend’s September 9 ex-dividend date could create normal short-term trading volatility, but it does not change the company’s underlying earnings outlook.

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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