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Avnet (AVT) to Report Q1 Earnings: What's in the Offing?

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Avnet (AVT - Free Report) is slated to report first-quarter fiscal 2022 results on Oct 28.

The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 66.8%.

For the fiscal first quarter, Avnet projects revenues in the range of $5.1-$5.4 billion. The Zacks Consensus Estimate for revenues is pegged at $5.23 billion, suggesting a 10.7% increase from the year-ago quarter’s reported figure.

Additionally, Avnet forecasts adjusted earnings per share in the range of $1.02-$1.12. The consensus mark for earnings is pinned at $1.08 per share, calling for a whopping 200% 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

Factors to Consider

Avnet’s fiscal first-quarter performance is likely to have benefited from the high demand for its electronic components. Further, the Americas and EMEA regions are anticipated to have registered higher revenues, which typically generate high margins. This is likely to have boosted profitability in the quarter to be reported.

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

The Zacks Consensus Estimate for the Electronic Component segment’s revenues is pegged at $4.78 billion, calling for a 9.1% year-over-year increase. The consensus mark for the Premier Farnell division’s sales is pinned at $417 million, indicating year-over-year growth of 22.3%.

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

However, headwinds related to the pandemic, including supply-chain challenges, might have prevailed through the fiscal first quarter. Apart from this, lower pricing and higher logistics costs might have partially offset the benefits of cost-saving initiatives for margins.

What Our Model Says

Our proven model does not predict an earnings beat for Avnet 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. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Avnet currently carries a Zacks Rank of 4 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release:

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Micro Devices (AMD - Free Report) has an Earnings ESP of +2.31% and carries a Zacks Rank #2, at present.

CACI International (CACI - Free Report) has an Earnings ESP of +4.43% and holds a Zacks Rank of 2, currently.