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Avnet, Inc.

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The global distributor of electronic components and computer products, Avnet reported lower-than-expected second-quarter fiscal 2016 results. Year-over-year comparisons were also unfavorable, mainly due to stronger U.S. dollar and weak demand in industrial markets and EM Americas. Furthermore, citing stronger U.S. dollar continue to hurt the company’s performance in near-term, management provided weak guidance for third quarter. Moreover, 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, cost cutting initiatives and acquisition synergies are encouraging. Moreover, the company’s continued share buybacks not only instill investors’ confidence but also boost earnings.

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