Avnet (NASDAQ:AVT) Posts Earnings Results

Avnet (NASDAQ:AVT) released its quarterly earnings results on Wednesday. The company reported $2.28 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.48, FiscalAI reports. The company had revenue of $8.30 billion for the quarter, compared to the consensus estimate of $7.56 billion. Avnet had a net margin of 1.21% and a return on equity of 9.57%. Avnet’s revenue was up 47.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.81 EPS. Avnet updated its Q1 2027 guidance to 2.800-2.900 EPS.

Here are the key takeaways from Avnet’s conference call:

• Record fourth-quarter performance: Avnet reported $8.3 billion in sales, up 48% year over year, with adjusted EPS of $2.28 and adjusted operating margin of 3.8%, both above guidance.
• Management cited a broadening demand recovery, with all regions and end markets showing improvement, book-to-bill ratios above one, extending lead times, and healthy backlog visibility into fiscal 2027.
• Operating leverage continued to expand margins, while Farnell’s operating margin rose to 9%; management expects Farnell to reach double-digit margins before the end of fiscal 2027 and SG&A as a percentage of gross profit to fall below 60%.
• Avnet guided first-quarter fiscal 2027 sales to $9.0 billion-$9.3 billion and adjusted EPS to $2.80-$2.90, implying roughly 10% sequential sales growth at the midpoint, primarily from higher unit volumes.
• Memory pricing accounted for roughly one-third of sales and gross-profit-dollar growth, while broader component price increases are emerging; the company also expects to use cash to fund inventory and receivables as growth accelerates, despite leverage improving to 3.2 times.

Avnet Price Performance

NASDAQ AVT opened at $96.80 on Friday. The company has a current ratio of 1.78, a quick ratio of 1.05 and a debt-to-equity ratio of 0.49. Avnet has a 1 year low of $44.25 and a 1 year high of $100.00. The company has a market cap of $7.94 billion, a PE ratio of 24.26, a PEG ratio of 0.31 and a beta of 1.09. The stock’s 50-day moving average price is $88.12 and its two-hundred day moving average price is $75.35.

Avnet Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a yield of 1.4%. The ex-dividend date was Wednesday, June 3rd. Avnet’s payout ratio is presently 54.47%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in AVT. Mackenzie Financial Corp lifted its position in shares of Avnet by 24.7% in the 4th quarter. Mackenzie Financial Corp now owns 33,651 shares of the company’s stock valued at $1,644,000 after acquiring an additional 6,656 shares in the last quarter. XTX Topco Ltd grew its position in Avnet by 69.5% during the 4th quarter. XTX Topco Ltd now owns 9,219 shares of the company’s stock worth $443,000 after purchasing an additional 3,779 shares in the last quarter. Voloridge Investment Management LLC raised its stake in Avnet by 4.7% during the 4th quarter. Voloridge Investment Management LLC now owns 303,501 shares of the company’s stock valued at $14,592,000 after purchasing an additional 13,699 shares during the period. Verdad Advisers LP acquired a new stake in Avnet during the 4th quarter valued at $240,000. Finally, Summit Securities Group LLC purchased a new stake in shares of Avnet in the fourth quarter valued at $28,000. 95.78% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

AVT has been the topic of a number of research analyst reports. Raymond James Financial reiterated a “strong-buy” rating and set a $95.00 price objective on shares of Avnet in a research note on Thursday, April 30th. Zacks Research downgraded Avnet from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 30th. Bank of America raised Avnet from an “underperform” rating to a “neutral” rating and increased their price target for the company from $66.00 to $96.00 in a research note on Wednesday, May 13th. Truist Financial lifted their price target on Avnet from $95.00 to $110.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Weiss Ratings lowered Avnet from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $93.25.

About Avnet

Avnet, Inc (NASDAQ: AVT) is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet’s offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.

Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.