- Avnet’s adjusted earnings per share (EPS) for Q2 were $0.87, missing the estimate of $0.89 and down from $1.40 year-over-year (y/y).
- Adjusted operating profit was $159.5 million, declining by 34% y/y and below the estimated $166.1 million.
- Total sales for the quarter were $5.66 billion, a decrease of 8.7% y/y, but higher than the estimated $5.56 billion.
- Sales in the Americas amounted to $1.37 billion, marking a 14% decline y/y.
- EMEA (Europe, the Middle East, and Africa) sales were $1.58 billion, representing a 25% drop y/y.
- Asia revenue increased by 8.4% y/y, reaching $2.71 billion.
- Electronic Components sales totaled $5.32 billion, down 8.5% y/y but above the estimated $5.24 billion.
- Farnell sales were $345.6 million, falling 12% y/y, yet slightly exceeding the estimate of $344.6 million.
- Analyst ratings include 1 buy, 4 holds, and 2 sells.
Avnet Inc on Smartkarma
On Smartkarma, independent analysts like Baptista Research provide valuable insights on Avnet Inc, a company facing a mix of challenges and opportunities. In their report “Avnet Inc.: These Are The 4 Biggest Challenges Why We Lack Optimism! – Major Drivers,” Baptista Research highlights Avnet’s first quarter fiscal year 2025 results, showcasing strong performance in Asia but facing challenges in Western economies. Despite difficulties in the Farnell segment, Avnet exceeded revenue projections, reaching $5.6 billion, with adjusted earnings per share at $0.92. The operational cash flow also demonstrated robustness by generating over $100 million.
Furthermore, in another report by Baptista Research titled “Avnet Inc.: Increased AI and Data Center Engagement As A Critical Factor Influencing Future Growth! – Major Drivers,” they delve into Avnet’s fiscal year 2024 financial results. Despite a mixed scenario with challenges like softening demand, Avnet managed to achieve a revenue of $23.8 billion and earnings per share of $5.43. Strategic maneuvers in fiscal 2024 helped Avnet navigate the less favorable demand backdrop, showcasing the company’s adaptability and resilience in the face of changing market conditions.
A look at Avnet Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Avnet Inc, a global distributor of computer products and semiconductors, is positioned favorably for long-term growth based on its strong Smart Scores. With a top-rated Value score of 5, Avnet is deemed to be attractively priced relative to its intrinsic value. This indicates a potential for solid returns for investors. Additionally, the company scores well in Growth with a score of 4, suggesting promising prospects for expanding its business and increasing profitability over time. Coupled with a Resilience score of 3, Avnet demonstrates a level of stability amidst economic fluctuations, further bolstering its long-term outlook.
Although Avnet Inc may not be the highest yielding in terms of Dividend and lacks significant Momentum, the strengths in Value, Growth, and Resilience bode well for the company’s future performance. With its wide range of products and services catering to a global customer base, Avnet appears to be on a positive trajectory for sustainable growth. Investors may find Avnet Inc an appealing prospect for long-term investment opportunities based on its overall Smart Scores assessment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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