- Avnet’s fourth-quarter adjusted earnings per share (EPS) were 81 cents, exceeding estimates of 74 cents but down from $1.22 year-over-year (y/y).
- The company’s adjusted operating profit was $142.9 million, a decline of 26% y/y and slightly below the estimate of $144.2 million.
- Total sales for Avnet were $5.62 billion, a 1% increase y/y, surpassing the estimate of $5.37 billion.
- Sales in the Americas decreased by 2% y/y to $1.33 billion.
- Sales in the Europe, Middle East, and Africa (EMEA) region declined by 17% y/y to $1.60 billion.
- Asia’s revenue increased significantly by 18% y/y to $2.69 billion.
- Electronic Components sales totalled $5.23 billion, slightly up by 0.8% y/y and above the estimate of $5 billion.
- Farnell sales reached $386.5 million, a 3% growth y/y, exceeding the estimate of $378.4 million.
- Avnet’s forecast for the first quarter projects sales in the range of $5.55 billion to $5.85 billion, aligning with the estimate of $5.55 billion.
- CEO Phil Gallagher expressed optimism about recovery efforts, highlighting growth in Asia and Farnell as factors enabling them to exceed sales and earnings guidance.
- Gallagher also noted that cost management and working capital optimization contributed to improved operating cash flow.
- Stock ratings: 1 buy, 3 holds, and 2 sells.
Avnet Inc on Smartkarma
On Smartkarma, analysts are closely following Avnet Inc, particularly with a recent report from Baptista Research. The report titled “Avnet Inc: Promising Developments At Farnell Are Not Enough To Overshadow Europe Challenges!” provides an insightful look into the company’s performance. Avnet, Inc. impressed in the third quarter of fiscal year 2025, surpassing expectations with sales reaching $5.3 billion, close to the high end of its guidance. Adjusted earnings per share stood at $0.84, exceeding predictions. Despite facing challenges in Western markets, especially in Europe, the company managed to achieve a positive cash flow of $141 million, driven by strong performances in Asia and positive strides made by Farnell.
Baptista Research‘s analysis highlights both the successes and obstacles Avnet Inc faces, shedding light on the company’s resilience amidst tough market conditions. The report offers valuable insights for investors looking to understand Avnet’s position in the industry and its potential for growth. With a sentiment leaning towards bullish, the analysis acknowledges the hurdles in Europe while emphasizing the positive momentum in other regions. Smartkarma continues to be a platform where top independent analysts, like Baptista Research, share transparent and detailed research on companies like Avnet Inc, providing unique perspectives for investors to consider.
A look at Avnet Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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 company that distributes computer products and semiconductors globally, is showing a promising long-term outlook based on the Smartkarma Smart Scores. With a top score of 5 in Value, Avnet Inc is perceived as a strong investment in terms of its current valuation. Additionally, the company scores a decent 3 in Dividend, Growth, and Resilience, indicating moderate performance in these areas. Momentum, scoring a 4, suggests that Avnet Inc is on a positive trajectory.
The overall assessment of Avnet Inc‘s future prospects, as indicated by the Smartkarma Smart Scores, is quite optimistic. With a robust valuation and positive momentum, combined with steady performance in dividend, growth, and resilience factors, Avnet Inc seems well-positioned for long-term success in the market. Investors may view Avnet Inc as a potentially solid choice for their investment portfolios.
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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