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Why Avnet (AVT) International Revenue Trends Deserve Your Attention

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Have you evaluated the performance of Avnet's (AVT - Free Report) international operations for the quarter ending June 2025? Given the extensive global presence of this distributor of electronic components, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of AVT's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter stood at $5.62 billion, increasing 1% year over year. Now, let's delve into AVT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring AVT's International Revenue Patterns

Of the total revenue, $2.69 billion came from Asia during the last fiscal quarter, accounting for 47.9%. This represented a surprise of +17.62% as analysts had expected the region to contribute $2.29 billion to the total revenue. In comparison, the region contributed $2.48 billion, or 46.7%, and $2.29 billion, or 41.2%, to total revenue in the previous and year-ago quarters, respectively.

EMEA generated $1.6 billion in revenues for the company in the last quarter, constituting 28.5% of the total. This represented a surprise of -5.74% compared to the $1.7 billion projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $1.56 billion (29.3%), and in the year-ago quarter, it contributed $1.92 billion (34.5%) to the total revenue.

International Market Revenue Projections

Wall Street analysts expect Avnet to report a total revenue of $5.7 billion in the current fiscal quarter, which suggests an increase of 1.7% from the prior-year quarter. Revenue shares from Asia and EMEA are predicted to be 45%, and 29.1%, corresponding to amounts of $2.57 billion, and $1.66 billion, respectively.

For the entire year, the company's total revenue is forecasted to be $22.87 billion, which is an improvement of 3% from the previous year. The revenue contributions from different regions are expected as follows: Asia will contribute 45.1% ($10.3 billion), and EMEA 29.7% ($6.78 billion) to the total revenue.

Wrapping Up

Relying on international markets for revenues, Avnet faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

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 #5 (Strong 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 >>>> .

Exploring Recent Trends in Stock Price

Over the past month, the stock has lost 7.2% versus the Zacks S&P 500 composite's 2.7% increase. The Zacks Computer and Technology sector, of which Avnet is a part, has risen 6.3% over the same period. The company's shares have increased 0.2% over the past three months compared to the S&P 500's 13.2% increase. Over the same period, the sector has risen 24.3%


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