- Avnet’s sales forecast for Q4 is between $5.15 billion and $5.45 billion, below the estimated $5.48 billion.
- Adjusted earnings per share in the third quarter were $0.84, down from $1.10 year-over-year, but surpassed the estimated $0.72.
- Adjusted operating profit for the third quarter was $152.7 million, a 25% decrease year-over-year, yet above the expected $146.8 million.
- Third-quarter sales totaled $5.32 billion, a 6% decline year-over-year, exceeding the predicted $5.29 billion.
- Sales in the Americas were $1.27 billion, a 9.2% drop year-over-year.
- EMEA (Europe, Middle East, and Africa) sales experienced a significant decline by 24% year-over-year, amounting to $1.56 billion.
- Asia revenue increased by 13% year-over-year, reaching $2.48 billion.
- Sales in the Electronic Components segment fell by 5.7% year-over-year, totaling $4.95 billion, slightly below the estimate of $4.96 billion.
- Farnell sales were $366.7 million, a 10% decrease compared to the previous year, yet higher than the estimated $346.7 million.
- The current stock ratings include 1 buy, 3 holds, and 2 sells.
Avnet Inc on Smartkarma
Analyst coverage of Avnet Inc on Smartkarma provides a comprehensive insight into the company’s performance and future prospects. Baptista Research, a prominent analyst on the platform, has published two research reports on Avnet Inc.
In the first report titled “Avnet Inc.: Will Its Shift High-Margin Businesses Like IP&E Pay Off? – Major Drivers”, Baptista Research highlights Avnet’s second-quarter fiscal year 2025 results, emphasizing both challenges and opportunities in the market. Despite sales of $5.7 billion and an adjusted EPS of $0.87, with sales resilience in Asia but weaker demand in Western regions, the global book-to-bill ratio remains below parity, indicating ongoing market challenges, particularly in Europe.
Furthermore, in the second report titled “Avnet Inc.: These Are The 4 Biggest Challenges Why We Lack Optimism! – Major Drivers”, Baptista Research discusses Avnet’s first quarter fiscal year 2025 results, pointing out a mixed performance with strong growth in Asia, challenges in Western economies, and difficulties in the Farnell segment. Despite total revenue reaching $5.6 billion and adjusted EPS at $0.92, exceeding initial projections, the report raises concerns over the company’s challenges and lack of optimism.
A look at Avnet Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
Based on the Smartkarma Smart Scores, Avnet Inc appears to have a positive long-term outlook. With a strong Value score of 4, the company is considered to provide good value for investors. Additionally, Avnet Inc scores well in Momentum with a score of 4, indicating that it has positive momentum in the market. This suggests that the company’s stock price is potentially on an upward trend.
Despite not scoring as high in Dividend, Growth, and Resilience with scores of 3 for each, Avnet Inc still maintains a solid overall performance. This indicates that while the company may not be the top performer in these areas, it still demonstrates consistent performance and stability in its operations. With its global presence and diverse product offerings, Avnet Inc is well-positioned to continue serving its customers worldwide and navigate through various market conditions effectively.
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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