Have you assessed how the international operations of Avnet (AVT Quick QuoteAVT - Free Report) performed in the quarter ended September 2025? For this distributor of electronic components, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall 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.

While analyzing AVT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $5.9 billion, marking an increase of 5.3% 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.

Exploring AVT's International Revenue Patterns

During the quarter, EMEA contributed $1.67 billion in revenue, making up 28.2% of the total revenue. When compared to the consensus estimate of $1.7 billion, this meant a surprise of -2.2%. Looking back, EMEA contributed $1.6 billion, or 28.5%, in the previous quarter, and $1.67 billion, or 29.8%, in the same quarter of the previous year.

Asia accounted for 48.5% of the company's total revenue during the quarter, translating to $2.86 billion. Revenues from this region represented a surprise of +8.58%, with Wall Street analysts collectively expecting $2.64 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $2.69 billion (47.9%) and $2.61 billion (46.5%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Avnet will post revenues of $6 billion, which reflects an increase of 6% the same quarter in the previous year. The revenue contributions are expected to be 26.9% from EMEA ($1.61 billion), and 45.4% from Asia ($2.72 billion).

For the full year, a total revenue of $23.49 billion is expected for the company, reflecting an increase of 5.8% from the year before. The revenues from EMEA and Asia are expected to make up 28.2%, and 45.7% of this total, corresponding to $6.62 billion, and $10.74 billion, respectively.

Key Takeaways

Avnet's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At the moment, Avnet has a Zacks Rank #4 (Sell), signifying that it may underperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Look at Avnet's Recent Stock Price Performance

Over the past month, the stock has lost 6.6% versus the Zacks S&P 500 composite's 2.4% increase. The Zacks Computer and Technology sector, of which Avnet is a part, has risen 6.6% over the same period. The company's shares have declined 6.8% over the past three months compared to the S&P 500's 8.2% increase. Over the same period, the sector has risen 16.5%