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Avnet (AVT) to Report Q2 Earnings: What's in the Offing?
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Avnet (AVT - Free Report) is slated to report second-quarter fiscal 2022 results on Jan 26.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.8%.
For the fiscal second quarter, Avnet projects revenues in the range of $5.3-$5.7 billion. The Zacks Consensus Estimate for revenues is pegged at $5.52 billion, suggesting an 18.3% increase from the year-ago quarter’s reported figure.
Additionally, AVT forecasts adjusted earnings per share in the range of $1.20-$1.30. The consensus mark for earnings stands at $1.25 per share, calling for a whopping 160% year-over-year increase.
Let’s see how things have shaped up prior to this announcement.
Avnet’s fiscal second-quarter performance is likely to have benefited from high demand for its electronic components. Further, America and the EMEA are anticipated to have registered higher revenues, which typically generate high margins. This is likely to have boosted the profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for the Electronic Component segment’s revenues is pegged at $5.06 billion, calling for a 16.5% year-over-year increase. The consensus mark for the Premier Farnell division’s sales stands at $454 million, indicating year-over-year growth of 39.3%.
Also, efficient cost-reduction programs are expected to have been an upside for margins during the fiscal second quarter.
However, headwinds related to the pandemic, including supply-chain challenges, might have prevailed through the fiscal second 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 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 carries a Zacks Rank of 3 and has 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 the Favorable Combination
Per our model, Advanced Micro Devices (AMD - Free Report) , Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.
Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +2.89% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%.
The Zacks Consensus Estimate for Apple’s quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6% year over year to $118.1 billion.
Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +7.33%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.
The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.7% from the year-ago quarter.
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Avnet (AVT) to Report Q2 Earnings: What's in the Offing?
Avnet (AVT - Free Report) is slated to report second-quarter fiscal 2022 results on Jan 26.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.8%.
For the fiscal second quarter, Avnet projects revenues in the range of $5.3-$5.7 billion. The Zacks Consensus Estimate for revenues is pegged at $5.52 billion, suggesting an 18.3% increase from the year-ago quarter’s reported figure.
Additionally, AVT forecasts adjusted earnings per share in the range of $1.20-$1.30. The consensus mark for earnings stands at $1.25 per share, calling for a whopping 160% year-over-year increase.
Let’s see how things have shaped up prior to this announcement.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote
Factors to Consider
Avnet’s fiscal second-quarter performance is likely to have benefited from high demand for its electronic components. Further, America and the EMEA are anticipated to have registered higher revenues, which typically generate high margins. This is likely to have boosted the profitability in the to-be-reported quarter.
The Zacks Consensus Estimate for the Electronic Component segment’s revenues is pegged at $5.06 billion, calling for a 16.5% year-over-year increase. The consensus mark for the Premier Farnell division’s sales stands at $454 million, indicating year-over-year growth of 39.3%.
Also, efficient cost-reduction programs are expected to have been an upside for margins during the fiscal second quarter.
However, headwinds related to the pandemic, including supply-chain challenges, might have prevailed through the fiscal second 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 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 carries a Zacks Rank of 3 and has 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 the Favorable Combination
Per our model, Advanced Micro Devices (AMD - Free Report) , Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Advanced Micro Devices carries a Zacks Rank #2 and has an Earnings ESP of +3.47%. The company is scheduled to report fourth-quarter 2021 results on Feb 1. Advanced Micro Devices’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AMD’s fourth-quarter earnings is pegged at 75 cents per share, indicating year-over-year growth of 44.2%. The consensus mark for revenues stands at $4.52 billion, suggesting a year-over-year increase of 39.4%.
Apple is slated to report first-quarter fiscal 2022 results on Jan 27. The company carries a Zacks Rank #3 and has an Earnings ESP of +2.89% at present. Apple’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while meeting the same on one occasion, the average surprise being 22.3%.
The Zacks Consensus Estimate for Apple’s quarterly earnings is pegged at $1.89 per share, suggesting a year-over-year improvement of 12.5%. AAPL’s quarterly revenues are estimated to increase 6% year over year to $118.1 billion.
Alphabet currently carries a Zacks Rank #3 and has an Earnings ESP of +7.33%. The company is slated to report its fourth-quarter 2021 results on Feb 1. Alphabet’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 4.6%.
The Zacks Consensus Estimate for Alphabet’s fourth-quarter earnings stands at $26.69 per share, implying a year-over-year increase of 19.7%. GOOGL is estimated to report revenues of $59.3 billion, which suggests growth of 27.7% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.