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Avnet, Inc. (AVT) - free report >>
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Avnet, Inc. (AVT) - free report >>
Arrow Electronics, Inc. (ARW) - free report >>
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Avnet (AVT) Q4 Earnings: What's in the Cards this Time?
Avnet Inc. (AVT - Free Report) is scheduled to report fourth-quarter fiscal 2016 results on Aug 10. Last quarter, the company posted a positive earnings surprise of 3.1%. Let's see how things are shaping up for this announcement.
Factors to Consider
Avnet posted mixed third-quarter fiscal 2016 results, wherein the bottom line beat the Zacks Consensus Estimate but the top line lagged the same. Year-over-year comparisons on both the counts were unfavorable, primarily due to a decline in the TS and EM business.
A significant portion of the company’s revenues comes from the sale of semiconductors, which is a cyclical industry, characterized by changes in technology and manufacturing capacity and is subject to significant market upturns and downturns.
Nonetheless, Avnet’s leading position in electronics distribution, continuous cost cutting initiatives and acquisition synergies are encouraging. However, competition from Arrow Electronics Inc. (ARW - Free Report) and Ingram Micro remains a headwind.
AVNET Price and EPS Surprise
AVNET Price and EPS Surprise | AVNET Quote
Earnings Whispers?
Our proven model does not conclusively show that Avnet will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 83 cents per share. Hence, the difference is 0.00%.
Zacks Rank: Avnet has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Digital Turbine, Inc. (APPS - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #3
The Gap, Inc. (GPS - Free Report) with an Earnings ESP of +2.13% and a Zacks Rank #3
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