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Avnet (AVT) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

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The upcoming report from Avnet (AVT - Free Report) is expected to reveal quarterly earnings of $1.39 per share, indicating a decline of 30.5% compared to the year-ago period. Analysts forecast revenues of $6.15 billion, representing a decrease of 8.4% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

That said, let's delve into the average estimates of some Avnet metrics that Wall Street analysts commonly model and monitor.

The average prediction of analysts places 'Sales- Farnell' at $398.96 million. The estimate points to a change of -2.2% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Sales- Electronic Components' of $5.75 billion. The estimate points to a change of -8.8% from the year-ago quarter.

Analysts' assessment points toward 'Operating Income (loss)- Electronic Components' reaching $248.26 million. Compared to the current estimate, the company reported $296.70 million in the same quarter of the previous year.

Analysts predict that the 'Operating Income (loss)- Farnell' will reach $20.01 million. Compared to the current estimate, the company reported $36.90 million in the same quarter of the previous year.

View all Key Company Metrics for Avnet here>>>

Over the past month, shares of Avnet have returned -6.2% versus the Zacks S&P 500 composite's +2.5% change. Currently, AVT carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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