Avnet (NASDAQ:AVT) Issues Quarterly Earnings Results, Beats Expectations By $0.77 EPS

Avnet (NASDAQ:AVT) issued its earnings results on Wednesday. The company reported $3.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.86 by $0.77, FiscalAI reports. Avnet had a return on equity of 9.57% and a net margin of 1.21%. The company had revenue of $10.72 billion for the quarter, compared to the consensus estimate of $9.22 billion. During the same quarter last year, the company earned $0.84 EPS. The firm’s quarterly revenue was up 81.7% on a year-over-year basis.

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

• Avnet delivered record first-quarter sales of $10.7 billion and adjusted EPS of $3.63, both above expectations. For Q2, it forecast sales of $11.1 billion–$11.4 billion and adjusted EPS of $3.90–$4.10.
• Management said demand is improving broadly across regions and end markets, with book-to-bill above parity and backlog growing; it views the recovery as broader than inventory replenishment alone. Data center, aerospace and defense, and networking were among the strongest areas.
• Operating leverage lifted adjusted operating margin to 4.7%, its highest level since fiscal 2023. Electronic Components reached 4.8% margin, with 5% expected in the second half of fiscal 2027, while Farnell returned to a double-digit margin at 10.1%.
• Growth required a substantial working-capital investment: Avnet used $842 million of operating cash and debt increased by about $950 million. The company expects to raise additional capital to fund growth and anticipates positive cash flow by fiscal year-end.
• Lead times are lengthening across more component categories, and pricing increases are beginning to extend beyond memory; management said about one-third of sales growth came from memory pricing. It said supply constraints have not materially limited growth or the Q2 outlook so far, but is monitoring availability and customer impacts.

Avnet Price Performance

AVT traded down $2.56 during trading hours on Wednesday, hitting $86.17. The company’s stock had a trading volume of 1,858,170 shares, compared to its average volume of 1,263,860. The stock has a market cap of $7.09 billion, a price-to-earnings ratio of 21.60, a P/E/G ratio of 0.26 and a beta of 1.11. The business’s 50-day moving average price is $94.79 and its 200-day moving average price is $81.12. The company has a current ratio of 1.78, a quick ratio of 0.97 and a debt-to-equity ratio of 0.49. Avnet has a 12 month low of $44.25 and a 12 month high of $108.63.

Avnet Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 23rd. Investors of record on Wednesday, September 9th were given a $0.37 dividend. This is a boost from Avnet’s previous quarterly dividend of $0.35. This represents a $1.48 annualized dividend and a yield of 1.7%. The ex-dividend date was Wednesday, September 9th. Avnet’s dividend payout ratio (DPR) is presently 37.09%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on AVT shares. Zacks Research cut shares of Avnet from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 19th. Truist Financial boosted their price target on shares of Avnet from $95.00 to $110.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Weiss Ratings raised shares of Avnet from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, October 9th. Wall Street Zen upgraded Avnet from a “buy” rating to a “strong-buy” rating in a research report on Saturday, October 17th. Finally, Wells Fargo & Company lifted their target price on Avnet from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $93.25.

Insider Buying and Selling at Avnet

In other news, SVP Michael Ryan Mccoy sold 32,052 shares of the business’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $91.10, for a total value of $2,919,937.20. Following the sale, the senior vice president directly owned 76,674 shares in the company, valued at $6,985,001.40. The trade was a 29.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Philip Gallagher sold 51,900 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $98.46, for a total transaction of $5,110,074.00. Following the sale, the chief executive officer owned 168,923 shares in the company, valued at $16,632,158.58. This represents a 23.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.00% of the stock is owned by company insiders.

Key Stories Impacting Avnet

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Avnet reported adjusted earnings of $3.63 per share, beating the $2.86 consensus estimate and rising from $0.84 a year earlier. Revenue increased 81.7% year over year to $10.72 billion, also above estimates of $9.22 billion. The company attributed the surge to stronger demand. Avnet tops Q1 earnings and revenue estimates
• Positive Sentiment: Avnet initiated fiscal Q2 guidance, described in coverage as optimistic on revenue, offering investors a favorable near-term demand signal. Avnet fiscal Q1 earnings, revenue and guidance
• Neutral Sentiment: A Q1 earnings-call transcript is available, but the supplied article information does not provide additional call details that would clarify the market reaction. Avnet Q1 2027 earnings call transcript
• Negative Sentiment: Despite the earnings and revenue beats and upbeat guidance, AVT’s share price decreased. The available reports do not identify a specific negative catalyst, so the move may reflect factors not covered in these articles rather than a clearly reported deterioration in results.

About Avnet

Avnet, Inc is a global technology distributor that helps manufacturers and design engineers source electronic components and develop products. The company supplies semiconductors, embedded processors, memory, connectivity products, sensors, power-management components and other electronic parts used in industrial, automotive, communications, computing, aerospace and defense applications.

In addition to component distribution, Avnet provides engineering and design services, supply-chain management, product customization, logistics, and technical support.