Avnet (AVT - Free Report) is slated to report third-quarter fiscal 2022 results on Apr 27.
The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.7%.
Avnet estimates fiscal third-quarter revenues in the range of $5.4 billion to $5.8 billion (mid-point $5.6 billion). The Zacks Consensus Estimate for the same is pegged at $5.62 billion, suggesting an increase of 14.2% from the year-ago quarter's reported figure.
The Phoenix, AZ-based tech company projects adjusted earnings in the band of $1.45-$1.55 per share (mid-point $1.50). The consensus mark for the same stands at $1.51 per share, which indicates a year-over-year surge of 104.1%.
Factors to Note
Avnet's fiscal third-quarter performance is likely to have benefited from high demand for its electronic components. Specifically, America and the EMEA are anticipated to have registered higher revenues, which typically generate high margins. This might have boosted its profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for the Electronic Component segment's revenues is pegged at $5.15 billion, suggesting an increase of 13.9% year over year. The consensus mark for the Premier Farnell division's sales stands at $454 million, indicating year-over-year growth of 14.6%.
With critical updates in Farnell's e-commerce platform, Avnet might have witnessed continued engagement of existing customers and new customer acquisitions in the quarter to be reported. The company expects a positive cash flow and an upside in margins with efficient cost-reduction programs in the third quarter.
However, headwinds related to COVID-19 restrictions and persistent disruption from supply-chain constraints might have weighed on the company's top and bottom lines in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for AVT this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that's not the case here.
Avnet currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Apple (AAPL - Free Report) , Sony (SONY - Free Report) and Fortive (FTV - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Apple is slated to report second-quarter fiscal 2022 results on Apr 28. The company has a Zacks Rank #2 and an Earnings ESP of +1.78% at present. Apple's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and matched once, the average surprise being 20.3%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.43 per share, suggesting a year-over-year improvement of 2.1%. AAPL's quarterly revenues are estimated to increase 5.4% year over year to $94.4 billion.
Sony has a Zacks Rank #3 and an Earnings ESP of +12.96%. The company is scheduled to report fourth-quarter fiscal 2022 results on Apr 27. Sony's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 51.4%.
The Zacks Consensus Estimate for SONY's fourth-quarter earnings is pegged at 82 cents per share, indicating a year-over-year increase of 1.23%. The consensus mark for revenues stands at $20.82 billion, suggesting a year-over-year decline of 0.65%.
Fortive currently has a Zacks Rank #3 and an Earnings ESP of +0.30%. The company is slated to report its first-quarter 2022 results on Apr 28. Fortive's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.
The Zacks Consensus Estimate for Fortive's first-quarter earnings stands at 68 cents per share, suggesting a year-over-year increase of 7.9%. FTV anticipates revenues of $1.35 billion, which suggests growth of 7.1% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Avnet (AVT - Free Report) is slated to report third-quarter fiscal 2022 results on Apr 27.
The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.7%.
Avnet estimates fiscal third-quarter revenues in the range of $5.4 billion to $5.8 billion (mid-point $5.6 billion). The Zacks Consensus Estimate for the same is pegged at $5.62 billion, suggesting an increase of 14.2% from the year-ago quarter's reported figure.
The Phoenix, AZ-based tech company projects adjusted earnings in the band of $1.45-$1.55 per share (mid-point $1.50). The consensus mark for the same stands at $1.51 per share, which indicates a year-over-year surge of 104.1%.
Factors to Note
Avnet's fiscal third-quarter performance is likely to have benefited from high demand for its electronic components. Specifically, America and the EMEA are anticipated to have registered higher revenues, which typically generate high margins. This might have boosted its profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for the Electronic Component segment's revenues is pegged at $5.15 billion, suggesting an increase of 13.9% year over year. The consensus mark for the Premier Farnell division's sales stands at $454 million, indicating year-over-year growth of 14.6%.
With critical updates in Farnell's e-commerce platform, Avnet might have witnessed continued engagement of existing customers and new customer acquisitions in the quarter to be reported. The company expects a positive cash flow and an upside in margins with efficient cost-reduction programs in the third quarter.
However, headwinds related to COVID-19 restrictions and persistent disruption from supply-chain constraints might have weighed on the company's top and bottom lines in the quarter to be reported.
What Our Model Says
Our proven model does not predict an earnings beat for AVT this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that's not the case here.
Avnet currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Apple (AAPL - Free Report) , Sony (SONY - Free Report) and Fortive (FTV - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Apple is slated to report second-quarter fiscal 2022 results on Apr 28. The company has a Zacks Rank #2 and an Earnings ESP of +1.78% at present. Apple's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters and matched once, the average surprise being 20.3%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly earnings is pegged at $1.43 per share, suggesting a year-over-year improvement of 2.1%. AAPL's quarterly revenues are estimated to increase 5.4% year over year to $94.4 billion.
Sony has a Zacks Rank #3 and an Earnings ESP of +12.96%. The company is scheduled to report fourth-quarter fiscal 2022 results on Apr 27. Sony's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 51.4%.
The Zacks Consensus Estimate for SONY's fourth-quarter earnings is pegged at 82 cents per share, indicating a year-over-year increase of 1.23%. The consensus mark for revenues stands at $20.82 billion, suggesting a year-over-year decline of 0.65%.
Fortive currently has a Zacks Rank #3 and an Earnings ESP of +0.30%. The company is slated to report its first-quarter 2022 results on Apr 28. Fortive's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4%.
The Zacks Consensus Estimate for Fortive's first-quarter earnings stands at 68 cents per share, suggesting a year-over-year increase of 7.9%. FTV anticipates revenues of $1.35 billion, which suggests growth of 7.1% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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