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For the first quarter of fiscal 2027 AVT expects adjusted earnings per share to be between $2.80 and $2.90. The Zacks Consensus Estimate for the same is pegged at $2.86, suggesting a year-over-year increase of 241%. The figure has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AVT’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 13.8%.
For the first quarter of fiscal 2027, Avnet expects revenues between $9 billion and $9.30 billion. The midpoint of $9.15 billion implies approximately 10% sequential growth. The Zacks Consensus Estimate for the same is pegged at $9.15 billion, suggesting year-over-year growth of 55%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Avnet Inc. this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Avnet’s Electronic Components segment performance in the to-be-reported quarter is likely to have benefited from improving demand across industrial, networking, data center, aerospace and defense markets. Broadening demand across end markets, coupled with stronger customer ordering patterns and increasing design activity, is expected to have supported revenue growth. The ongoing recovery in the semiconductor cycle and expanding demand for AI infrastructure are also likely to have contributed to sales momentum.
Improving component supply dynamics, rising lead times and expanding customer backlogs are expected to have supported order growth and provided greater revenue visibility. Higher memory prices amid tighter supply conditions are likely to have provided an additional boost to revenues, although the impact of pricing might have been partly offset by the pass-through nature of supplier price increases.
The Farnell business is expected to have maintained its recovery trajectory, benefiting from improving customer demand, a higher mix of on-board components and continued traction in its digital platform. Ongoing cross-selling initiatives through Avnet’s broader supplier and customer relationships are likely to have supported the segment’s performance in the first quarter of fiscal 2027.
Strength across the Electronic Components and Farnell businesses is expected to have driven Avnet’s overall top-line performance in the to-be-reported quarter. Momentum in AI-related infrastructure spending, data center deployments, networking and industrial automation is likely to have remained a key growth driver during the quarter.
However, lingering macroeconomic uncertainty, geopolitical tensions, trade policy changes and intense competitive pressures could have weighed on customer spending and pricing in certain end markets. Additionally, the pass-through nature of higher component prices, particularly in memory, might have limited gross margin expansion despite supporting revenue growth.
AVT’s Price Performance, Valuation and Estimates
Avnet shares have soared 83.4% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 60.8% growth.
AVT YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.21X, which is below the P/S multiple of industry’s P/S multiple of 0.34X. The undervaluation is further substantiated by the Zacks Value Score of A.
AVT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
AVT’s Investment Thesis
Avnet’s product portfolio includes semiconductors, IP&E components, embedded offerings and supply-chain services, allowing it to support industrial, transportation, data center and other applications, and its customers are spread across 140 nations, with a major portion of them being original equipment manufacturers. Avnet further supports customers with engineering resources, digital capabilities, integrated solutions and physical supply-chain infrastructure.
Although Avnet operates in a competitive technology distribution market, this hasn’t stopped Avnet from increasing its top- and bottom-line growth. AVT competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) , TD SYNNEX (SNX - Free Report) and CDW (CDW - Free Report) . However, the company has created a niche for itself which helps to protect its margins.
Arrow Electronics competes head-to-head with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers. Avnet comes to a crossroads with CDW and TD SYNNEX as they form part of the AI infrastructure value chain. Avnet plays its role much earlier in the technology value chain by supplying electronic components directly to equipment manufacturers, making the overlap minimal with CDW and TD SYNNEX.
Furthermore, AVT gains from broader demand growth across industrial, networking, aerospace and defense. In the fourth quarter of fiscal 2026, all end markets increased in double digits both year over year and sequentially, while book-to-bill remained well above parity in every region and lead times rose across most product categories. Furthermore, Avnet is supporting higher sales while increasing the velocity of inventory and working capital.
Conclusion
Avnet’s first-quarter fiscal 2027 results are expected to reflect improving demand across AI infrastructure, data centers, networking and industrial markets. Strong customer orders, recovering semiconductor demand and Farnell’s growth are likely to have support revenues in the to-be-reported quarter.
View the Zacks #1 Rank List
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Avnet to Post Q1 Earnings: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Avnet (AVT - Free Report) is scheduled to report first-quarter fiscal 2027 results on Nov. 4, before market open.
For the first quarter of fiscal 2027 AVT expects adjusted earnings per share to be between $2.80 and $2.90. The Zacks Consensus Estimate for the same is pegged at $2.86, suggesting a year-over-year increase of 241%. The figure has remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
AVT’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 13.8%.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote
For the first quarter of fiscal 2027, Avnet expects revenues between $9 billion and $9.30 billion. The midpoint of $9.15 billion implies approximately 10% sequential growth. The Zacks Consensus Estimate for the same is pegged at $9.15 billion, suggesting year-over-year growth of 55%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Avnet Inc. this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Avnet currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence Avnet’s Q1 Results
Avnet’s Electronic Components segment performance in the to-be-reported quarter is likely to have benefited from improving demand across industrial, networking, data center, aerospace and defense markets. Broadening demand across end markets, coupled with stronger customer ordering patterns and increasing design activity, is expected to have supported revenue growth. The ongoing recovery in the semiconductor cycle and expanding demand for AI infrastructure are also likely to have contributed to sales momentum.
Improving component supply dynamics, rising lead times and expanding customer backlogs are expected to have supported order growth and provided greater revenue visibility. Higher memory prices amid tighter supply conditions are likely to have provided an additional boost to revenues, although the impact of pricing might have been partly offset by the pass-through nature of supplier price increases.
The Farnell business is expected to have maintained its recovery trajectory, benefiting from improving customer demand, a higher mix of on-board components and continued traction in its digital platform. Ongoing cross-selling initiatives through Avnet’s broader supplier and customer relationships are likely to have supported the segment’s performance in the first quarter of fiscal 2027.
Strength across the Electronic Components and Farnell businesses is expected to have driven Avnet’s overall top-line performance in the to-be-reported quarter. Momentum in AI-related infrastructure spending, data center deployments, networking and industrial automation is likely to have remained a key growth driver during the quarter.
However, lingering macroeconomic uncertainty, geopolitical tensions, trade policy changes and intense competitive pressures could have weighed on customer spending and pricing in certain end markets. Additionally, the pass-through nature of higher component prices, particularly in memory, might have limited gross margin expansion despite supporting revenue growth.
AVT’s Price Performance, Valuation and Estimates
Avnet shares have soared 83.4% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 60.8% growth.
AVT YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.21X, which is below the P/S multiple of industry’s P/S multiple of 0.34X. The undervaluation is further substantiated by the Zacks Value Score of A.
AVT Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
AVT’s Investment Thesis
Avnet’s product portfolio includes semiconductors, IP&E components, embedded offerings and supply-chain services, allowing it to support industrial, transportation, data center and other applications, and its customers are spread across 140 nations, with a major portion of them being original equipment manufacturers. Avnet further supports customers with engineering resources, digital capabilities, integrated solutions and physical supply-chain infrastructure.
Although Avnet operates in a competitive technology distribution market, this hasn’t stopped Avnet from increasing its top- and bottom-line growth. AVT competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) , TD SYNNEX (SNX - Free Report) and CDW (CDW - Free Report) . However, the company has created a niche for itself which helps to protect its margins.
Arrow Electronics competes head-to-head with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers. Avnet comes to a crossroads with CDW and TD SYNNEX as they form part of the AI infrastructure value chain. Avnet plays its role much earlier in the technology value chain by supplying electronic components directly to equipment manufacturers, making the overlap minimal with CDW and TD SYNNEX.
Furthermore, AVT gains from broader demand growth across industrial, networking, aerospace and defense. In the fourth quarter of fiscal 2026, all end markets increased in double digits both year over year and sequentially, while book-to-bill remained well above parity in every region and lead times rose across most product categories. Furthermore, Avnet is supporting higher sales while increasing the velocity of inventory and working capital.
Conclusion
Avnet’s first-quarter fiscal 2027 results are expected to reflect improving demand across AI infrastructure, data centers, networking and industrial markets. Strong customer orders, recovering semiconductor demand and Farnell’s growth are likely to have support revenues in the to-be-reported quarter.