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Investing in Avnet (AVT)? Don't Miss Assessing Its International Revenue Trends
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Have you looked into how Avnet (AVT - Free Report) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this distributor of electronic components, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While delving into AVT's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $5.65 billion, marking a decrease of 13.2% from the year-ago quarter. We will next turn our attention to dissecting AVT's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into AVT's International Revenue Trends
EMEA generated $2.05 billion in revenues for the company in the last quarter, constituting 36.3% of the total. This represented a surprise of -0.36% compared to the $2.06 billion projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $2.11 billion (34.1%), and in the year-ago quarter, it contributed $2.39 billion (36.7%) to the total revenue.
Of the total revenue, $2.2 billion came from Asia during the last fiscal quarter, accounting for 38.9%. This represented a surprise of +1.33% as analysts had expected the region to contribute $2.17 billion to the total revenue. In comparison, the region contributed $2.5 billion, or 40.3%, and $2.41 billion, or 36.9%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Avnet will report a total revenue of $5.37 billion, which reflects a decline of 18.2% from the same quarter in the previous year. The revenue contributions are expected to be 38.1% from EMEA ($2.05 billion) and 40.6% from Asia ($2.18 billion).
For the full year, the company is projected to achieve a total revenue of $23.73 billion, which signifies a fall of 10.6% from the last year. The share of this revenue from various regions is expected to be: EMEA at 35.9% ($8.53 billion) and Asia at 39.2% ($9.3 billion).
Closing Remarks
The dependency of Avnet on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Assessing Avnet's Stock Price Movement in Recent Times
Over the past month, the stock has gained 1.8% versus the Zacks S&P 500 composite's 1.6% decrease. The Zacks Computer and Technology sector, of which Avnet is a part, has declined 0.7% over the same period. The company's shares have increased 10% over the past three months compared to the S&P 500's 3.8% increase. Over the same period, the sector has risen 4.2%.
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Investing in Avnet (AVT)? Don't Miss Assessing Its International Revenue Trends
Have you looked into how Avnet (AVT - Free Report) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this distributor of electronic components, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While delving into AVT's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $5.65 billion, marking a decrease of 13.2% from the year-ago quarter. We will next turn our attention to dissecting AVT's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into AVT's International Revenue Trends
EMEA generated $2.05 billion in revenues for the company in the last quarter, constituting 36.3% of the total. This represented a surprise of -0.36% compared to the $2.06 billion projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $2.11 billion (34.1%), and in the year-ago quarter, it contributed $2.39 billion (36.7%) to the total revenue.
Of the total revenue, $2.2 billion came from Asia during the last fiscal quarter, accounting for 38.9%. This represented a surprise of +1.33% as analysts had expected the region to contribute $2.17 billion to the total revenue. In comparison, the region contributed $2.5 billion, or 40.3%, and $2.41 billion, or 36.9%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Avnet will report a total revenue of $5.37 billion, which reflects a decline of 18.2% from the same quarter in the previous year. The revenue contributions are expected to be 38.1% from EMEA ($2.05 billion) and 40.6% from Asia ($2.18 billion).
For the full year, the company is projected to achieve a total revenue of $23.73 billion, which signifies a fall of 10.6% from the last year. The share of this revenue from various regions is expected to be: EMEA at 35.9% ($8.53 billion) and Asia at 39.2% ($9.3 billion).
Closing Remarks
The dependency of Avnet on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Avnet currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Avnet's Stock Price Movement in Recent Times
Over the past month, the stock has gained 1.8% versus the Zacks S&P 500 composite's 1.6% decrease. The Zacks Computer and Technology sector, of which Avnet is a part, has declined 0.7% over the same period. The company's shares have increased 10% over the past three months compared to the S&P 500's 3.8% increase. Over the same period, the sector has risen 4.2%.