Avnet (NASDAQ:AVT) Issues Earnings Results, Beats Estimates By $0.48 EPS

Avnet (NASDAQ:AVT) released its quarterly earnings data on Wednesday. The company reported $2.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.48, FiscalAI reports. Avnet had a return on equity of 7.07% and a net margin of 0.86%.The firm had revenue of $8.30 billion for the quarter, compared to analyst estimates of $7.56 billion. During the same quarter in the prior year, the company earned $0.81 earnings per share. The business’s revenue for the quarter was up 47.7% compared to the same quarter last year. 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 Stock Performance

Shares of AVT traded up $2.10 during trading hours on Thursday, hitting $99.31. The company’s stock had a trading volume of 155,753 shares, compared to its average volume of 1,230,354. The business has a 50 day simple moving average of $87.93 and a two-hundred day simple moving average of $75.02. Avnet has a 52-week low of $44.25 and a 52-week high of $100.00. The company has a debt-to-equity ratio of 0.50, a current ratio of 2.01 and a quick ratio of 1.05. The company has a market cap of $8.15 billion, a price-to-earnings ratio of 38.50, a PEG ratio of 0.29 and a beta of 1.09.

Avnet Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Wednesday, June 3rd were given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date was Wednesday, June 3rd. Avnet’s dividend payout ratio (DPR) is currently 54.47%.

Wall Street Analysts Forecast Growth

AVT has been the topic of a number of research reports. Truist Financial upped their price target on shares of Avnet to $95.00 and gave the company a “buy” rating in a research note on Wednesday, April 29th. Raymond James Financial reaffirmed a “strong-buy” rating and issued a $95.00 target price on shares of Avnet in a report on Thursday, April 30th. Bank of America upgraded shares of Avnet from an “underperform” rating to a “neutral” rating and raised their price target for the company from $66.00 to $96.00 in a research note on Wednesday, May 13th. Weiss Ratings downgraded Avnet from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Finally, Wall Street Zen upgraded shares of Avnet from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 25th. One investment 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 company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $89.50.

More Avnet News

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Results exceeded expectations: Avnet reported adjusted earnings of $2.28 per share, above the $1.76-$1.80 consensus range, while revenue reached $8.30 billion versus estimates of approximately $7.56 billion. Revenue rose 47.7% year over year, and adjusted EPS increased sharply from $0.81 in the prior-year quarter. Avnet Q4 earnings and revenues
• Positive Sentiment: Upbeat outlook was the primary catalyst: Avnet forecast fiscal first-quarter 2027 adjusted EPS of $2.80-$2.90 and revenue of $9.0-$9.3 billion, well above consensus estimates of $1.84 EPS and $7.6 billion revenue. The guidance suggests continued momentum into the new fiscal year. Avnet fiscal 2026 financial results
• Positive Sentiment: Full-year growth was substantial: Fiscal 2026 sales totaled $27.6 billion, up 25% year over year. Quarterly operating income reached $231 million, with Electronic Components sales of $7.8 billion and Farnell sales of $500.1 million.
• Neutral Sentiment: Shareholder returns continued: Avnet returned $29 million through dividends during the quarter and completed $138 million of fiscal-year share repurchases, supporting per-share value despite the company’s relatively low 0.86% net margin.
• Negative Sentiment: Insider selling is a watch item: Recent filings show the CEO, CFO and chief digital officer sold shares, with no reported insider purchases over the past six months. This does not offset the earnings beat but may temper enthusiasm for some investors. Avnet record fourth-quarter sales

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC lifted its position in shares of Avnet by 30.7% during the fourth quarter. AQR Capital Management LLC now owns 2,961,608 shares of the company’s stock worth $142,394,000 after acquiring an additional 695,929 shares in the last quarter. Hotchkis & Wiley Capital Management LLC grew its position in shares of Avnet by 5.3% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 2,011,676 shares of the company’s stock valued at $105,170,000 after purchasing an additional 101,873 shares in the last quarter. Morgan Stanley grew its position in shares of Avnet by 16.2% in the fourth quarter. Morgan Stanley now owns 1,524,945 shares of the company’s stock valued at $73,319,000 after purchasing an additional 212,573 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Avnet by 13.9% during the 3rd quarter. Bank of America Corp DE now owns 1,041,359 shares of the company’s stock valued at $54,442,000 after purchasing an additional 127,118 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Avnet by 2.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 967,566 shares of the company’s stock valued at $46,521,000 after purchasing an additional 26,561 shares during the period. 95.78% of the stock is owned by institutional investors.

Avnet Company Profile

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.