Zacks Research Issues Pessimistic Outlook for Avnet Earnings

Key Points

• Zacks Research has revised its Q2 2026 earnings per share estimate for Avnet down to $1.01, from a previous estimate of $1.05, while maintaining a "Hold" rating on the stock.
• Avnet recently declared an increased quarterly dividend of $0.35, reflecting an annualized yield of 2.7% and a dividend payout ratio of 51.28%.
• Institutional investors own 95.78% of Avnet's stock, highlighting significant backing and investment interest in the company from large financial entities.

Avnet, Inc. (NASDAQ:AVT - Free Report) - Equities research analysts at Zacks Research cut their Q2 2026 earnings per share (EPS) estimates for Avnet in a research report issued to clients and investors on Tuesday, October 21st. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.01 for the quarter, down from their previous estimate of $1.05. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Avnet's current full-year earnings is $3.41 per share. Zacks Research also issued estimates for Avnet's Q3 2026 earnings at $1.32 EPS, Q4 2026 earnings at $1.40 EPS, FY2026 earnings at $4.53 EPS, Q1 2027 earnings at $1.42 EPS, Q2 2027 earnings at $1.60 EPS, Q3 2027 earnings at $1.61 EPS, FY2027 earnings at $6.50 EPS, Q1 2028 earnings at $1.75 EPS and FY2028 earnings at $7.50 EPS.

Other equities research analysts also recently issued research reports about the company. Bank of America lifted their target price on Avnet from $48.00 to $50.00 and gave the stock an "underperform" rating in a report on Monday, August 11th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Avnet in a report on Wednesday, October 8th. Finally, Truist Financial lifted their target price on Avnet from $50.00 to $54.00 and gave the stock a "hold" rating in a report on Thursday, August 7th. Three equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Avnet presently has a consensus rating of "Reduce" and an average target price of $49.00.

Avnet Trading Down 1.7%

Avnet stock opened at $52.15 on Wednesday. The company has a quick ratio of 1.16, a current ratio of 2.43 and a debt-to-equity ratio of 0.51. Avnet has a 52 week low of $39.22 and a 52 week high of $59.24. The company has a market capitalization of $4.34 billion, a price-to-earnings ratio of 19.10, a price-to-earnings-growth ratio of 0.39 and a beta of 1.06. The stock has a 50-day moving average price of $52.98 and a 200 day moving average price of $51.83.

Avnet (NASDAQ:AVT - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.81 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.09. Avnet had a return on equity of 6.07% and a net margin of 1.08%.The firm had revenue of $5.62 billion during the quarter, compared to the consensus estimate of $5.36 billion. During the same quarter in the previous year, the company posted $1.22 earnings per share. The company's revenue was up 1.0% compared to the same quarter last year.

Avnet Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Wednesday, September 17th were issued a $0.35 dividend. The ex-dividend date of this dividend was Wednesday, September 17th. This is a boost from Avnet's previous quarterly dividend of $0.33. This represents a $1.40 dividend on an annualized basis and a yield of 2.7%. Avnet's dividend payout ratio is presently 51.28%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Pzena Investment Management LLC lifted its holdings in Avnet by 2.9% in the second quarter. Pzena Investment Management LLC now owns 7,341,299 shares of the company's stock valued at $389,676,000 after acquiring an additional 209,003 shares during the period. American Century Companies Inc. increased its position in shares of Avnet by 10.8% in the first quarter. American Century Companies Inc. now owns 3,880,865 shares of the company's stock valued at $186,631,000 after buying an additional 378,440 shares in the last quarter. LSV Asset Management increased its position in shares of Avnet by 2.5% in the second quarter. LSV Asset Management now owns 2,667,923 shares of the company's stock valued at $141,613,000 after buying an additional 66,191 shares in the last quarter. Hotchkis & Wiley Capital Management LLC increased its position in shares of Avnet by 5.5% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 2,581,227 shares of the company's stock valued at $124,131,000 after buying an additional 134,372 shares in the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Avnet by 25.9% in the second quarter. AQR Capital Management LLC now owns 1,680,538 shares of the company's stock valued at $88,312,000 after buying an additional 345,721 shares in the last quarter. 95.78% of the stock is owned by institutional investors and hedge funds.

About Avnet

Avnet, Inc, distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers.

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