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Avnet Inc. (AVT - Analyst Report) is set to report second-quarter 2014 results on Jan 23. Last quarter, the company posted a positive earnings surprise of 2.27%. Let us see how things are shaping up for this announcement.

Growth Factors This Past Quarter

Avnet posted mixed first quarter results, with earnings per share beating the Zacks Consensus Estimate but revenues missing the same. We believe that Avnet’s restructuring initiatives and share buyback plans are expected to support the company’s bottom line. Moreover, the company has inked a number of distribution deals with several technology providers, which are expected to expand its product portfolio. This will drive top-line growth.

Moreover, synergies from the strategic acquisitions are expected to positively impact the company’s results going forward. Nonetheless, competition from Arrow Electronics, Inc. (ARW - Analyst Report) and a sluggish macroeconomic environment remain headwinds.

Earnings Whispers?

Our proven model does not conclusively show that Avnet will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.11. Hence, the difference is 0.00%.

Zacks Rank: Avnet’s Zacks Rank #3 (Hold), when combined with a 0.00% ESP makes surprise predictions difficult.

We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Seagate Technology Public Ltd. Co. (STX - Analyst Report), Earnings ESP of +1.44% and a Zacks Rank #1 (Strong Buy)

Cirrus Logic Inc. (CRUS - Snapshot Report), Earnings ESP of +4.41% and a Zacks Rank #1

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