Avnet (NASDAQ:AVT) Releases Quarterly Earnings Results

Avnet (NASDAQ:AVT) posted its earnings results on Wednesday. The company reported $2.28 EPS for the quarter, topping the consensus estimate of $1.80 by $0.48, FiscalAI reports. Avnet had a net margin of 0.86% and a return on equity of 7.07%. The firm had revenue of $8.30 billion for the quarter, compared to analysts’ expectations of $7.56 billion. During the same quarter last year, the firm earned $0.81 EPS. The company’s quarterly revenue 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

NASDAQ:AVT traded up $4.69 on Wednesday, reaching $97.22. 2,723,989 shares of the company’s stock were exchanged, compared to its average volume of 1,238,484. The firm has a market cap of $7.97 billion, a price-to-earnings ratio of 37.83, a P/E/G ratio of 0.28 and a beta of 1.09. 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 stock has a fifty day simple moving average of $87.72 and a 200-day simple moving average of $74.70. Avnet has a 52 week low of $44.25 and a 52 week high of $98.67.

Avnet Dividend Announcement

The firm 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. The ex-dividend date of this dividend was Wednesday, June 3rd. This represents a $1.40 annualized dividend and a yield of 1.4%. Avnet’s dividend payout ratio is 54.47%.

Trending Headlines about Avnet

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Quarterly results exceeded expectations. Avnet reported fiscal Q4 revenue of $8.30 billion, up 47.7% year over year and above the $7.56 billion analyst consensus. Adjusted earnings were $2.28 per share, compared with expectations of approximately $1.80 and $0.81 a year earlier. Avnet Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Forward guidance was the biggest catalyst. Avnet projected fiscal Q1 2027 revenue of $9.0 billion to $9.3 billion and EPS of roughly $2.80 to $2.90, well above consensus estimates of $7.6 billion in revenue and $1.84 EPS. The outlook suggests continued strength in demand across its distribution businesses. Avnet Reports Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Full-year growth and profitability improved. Fiscal 2026 sales reached $27.6 billion, up 25% year over year. Electronic Components generated $7.8 billion in Q4 sales, while Farnell contributed $500.1 million; operating income rose to $231 million.
• Neutral Sentiment: Management discussed the results and outlook during the earnings call, giving investors additional detail on demand trends, margins and the company’s fiscal 2027 expectations. Avnet Q4 2026 Earnings Call Transcript
• Negative Sentiment: Recent insider-trading data showed several insider sales and no reported purchases over the past six months. This may temper sentiment, although it is less significant than the earnings beat and outlook.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of AVT. Summit Securities Group LLC bought a new position in shares of Avnet in the fourth quarter worth $28,000. BOKF NA boosted its stake in Avnet by 1,116.7% in the 3rd quarter. BOKF NA now owns 584 shares of the company’s stock worth $31,000 after purchasing an additional 536 shares during the period. Kestra Advisory Services LLC bought a new position in Avnet in the 4th quarter worth about $90,000. EverSource Wealth Advisors LLC grew its holdings in Avnet by 81.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,918 shares of the company’s stock valued at $102,000 after buying an additional 863 shares in the last quarter. Finally, Osaic Holdings Inc. increased its position in shares of Avnet by 21.1% during the second quarter. Osaic Holdings Inc. now owns 2,423 shares of the company’s stock valued at $129,000 after buying an additional 423 shares during the period. 95.78% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on AVT shares. Wells Fargo & Company lifted their price target on Avnet from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Monday, July 20th. Wall Street Zen upgraded Avnet from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Zacks Research cut Avnet from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, June 30th. Bank of America raised shares of Avnet from an “underperform” rating to a “neutral” rating and boosted their price target for the stock from $66.00 to $96.00 in a report on Wednesday, May 13th. Finally, Raymond James Financial restated a “strong-buy” rating and set a $95.00 price target on shares of Avnet in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $89.50.

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.