Back to top

Image: Bigstock

Avnet (AVT) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

Avnet, Inc. (AVT - Free Report) is scheduled to report third-quarter fiscal 2021 results on Apr 26.

The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 389.34%.

For the third quarter, Avnet projects revenues between $4.3 billion and $4.7 billion. The Zacks Consensus Estimate for revenues is pegged at $4.56 billion, suggesting a 5.76% increase from the year-ago quarter’s reported figure.

Additionally, it forecasts adjusted earnings per share in the range of 52-58 cents. The consensus mark for earnings is pinned at 56 cents per share, implying a 47.37% year-on-year increase.

Let’s see how things have shaped up prior to this announcement.

Avnet, Inc. Price and EPS Surprise

Avnet, Inc. Price and EPS Surprise

Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote

Key Factors

Avnet’s quarterly performance is likely to have benefited from high demand for its electronic components.

Additionally, sequentially higher revenues are expected from the Americas and EMEA regions, which typically generate high margins. This is expected to have boosted profitability in the quarter to be reported.

Moreover, Farnell was appointed as an authorized distributor for National Instruments, which is likely to have been a growth booster in the quarter under review.

Also, efficient cost-reduction programs are expected to have been a positive for margins in the fiscal third quarter.

However, revenues from Asia are expected to have been seasonally lower due to the Chinese New Year.

Moreover, headwinds related to the pandemic, including supply-chain challenges, are expected to have lingered through the fiscal third quarter.

What Our Model Says

Our proven model predicts an earnings beat for Avnet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Avnet has an Earnings ESP of +0.89% and a Zacks Rank of 2, at present.

Other Stocks With Favorable Combinations

Here are some other companies, which, per our model, have the right combination of elements to post earnings beats in their upcoming releases:

NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank of 1, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +4.25% and currently, a Zacks Rank of 2.

Alphabet Inc. (GOOGL - Free Report) has an Earnings ESP of +3.71% and a Zacks Rank #3, at present.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create ""the world's first trillionaires."" Zacks' urgent special report reveals 3 AI picks investors need to know about today.  

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>