Back to top

Analyst Blog

Avnet Embedded, a unit of electronics and IT distributor Avnet Inc. (AVT - Analyst Report), recently announced that it has entered into an agreement with TechNexion.

The agreement will help Avnet to provide its original equipment manufacturer customer base with low-cost and high-value embedded System-on-Modules, which will significantly lower costs for customers and cut short the product development cycle. As far as TechNexion is concerned, the inclusion of its products in Avnet’s technology portfolio will lead to increased exposure for its products.

TechNexion is one of the leading providers of a wide range of embedded modular solutions. It is a Freescale proven partner and founder of the Embedded Design Modules Standard, an ARM-based processor. TechNexion also provides turnkey embedded systems, touch-interface panel PCs and fanless systems.

Earlier this week, Avnet expanded its agreement with Cisco (CSCO - Analyst Report) to distribute its high-value specialty data center products in Latin America and the Caribbean. The expansion of product lines across geographies is a big positive for a distributor such as Avnet and should further strengthen its core business of distributing electronic components.

Avnet reported revenues of $6.59 billion, up 4.5% from $6.31 billion in the year-ago quarter. Revenues in the quarter were toward the higher end of management’s guidance range of $6.15 billion to $6.75 billion and above the Zacks Consensus Estimate of $6.46 billion.

Based in Phoenix, Ariz., Avnet is an industrial distributor of electronic components, enterprise computer and storage products and embedded subsystems. Avnet distributes electronic components and computer products as received from suppliers. It also provides engineering design, materials management and logistics services, system integration, and configuration and supply chain advisory services.

Avnet’s leading position in electronics distribution, continuous cost cutting initiatives and acquisition synergies are encouraging. It does however see significant competition for both its domestic and foreign operations, especially from archrival Arrow Electronics Inc. (ARW - Analyst Report).

Currently, Avnet has a Zacks Rank #3 (Hold). Investors may also consider Quantum Corp. (QTM - Snapshot Report), a stock from the same sector with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
CHIPOTLE ME… CMG 689.85 +1.69%
CHINA BIOLO… CBPO 46.80 +1.60%
ILLUMINA IN… ILMN 174.67 +0.99%
GILEAD SCIE… GILD 101.68 +0.88%