What to Expect from Avnet's Earnings

Avnet (NASDAQ:AVT) is preparing to release its quarterly earnings on Wednesday, 2025-04-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Avnet to report an earnings per share (EPS) of $0.71.

The market awaits Avnet's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.01, leading to a 3.44% drop in the share price on the subsequent day.

Here's a look at Avnet's past performance and the resulting price change:

Quarter	Q2 2025	Q1 2025	Q4 2024	Q3 2024
EPS Estimate	0.88	0.86	0.95	1.11
EPS Actual	0.87	0.92	1.22	1.10
Price Change %	-3.0%	-6.0%	-1.0%	1.0%

Avnet Share Price Analysis

Shares of Avnet were trading at $51.7 as of April 28. Over the last 52-week period, shares are up 6.43%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Avnet

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Avnet.

The consensus rating for Avnet is Neutral, based on 2 analyst ratings. With an average one-year price target of $50.0, there's a potential 3.29% downside.

Analyzing Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Insight Enterprises, Ingram Micro Holding and Arrow Electronics, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Insight Enterprises, with an average 1-year price target of $160.0, suggesting a potential 209.48% upside.
• Analysts currently favor an Buy trajectory for Ingram Micro Holding, with an average 1-year price target of $25.8, suggesting a potential 50.1% downside.
• Analysts currently favor an Underperform trajectory for Arrow Electronics, with an average 1-year price target of $98.0, suggesting a potential 89.56% upside.

Snapshot: Peer Analysis

In the peer analysis summary, key metrics for Insight Enterprises, Ingram Micro Holding and Arrow Electronics are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Avnet	Neutral	-8.73%	$596.05M	1.77%
Insight Enterprises	Neutral	-7.31%	$439.64M	2.09%
Ingram Micro Holding	Buy	2.50%	$936.09M	2.26%
Arrow Electronics	Underperform	-7.21%	$803.31M	1.69%

Key Takeaway:

Avnet ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.

All You Need to Know About Avnet

Avnet Inc is a global distributor of electronic components, connecting suppliers of semiconductors and other components to a base of 2.1 million small- and mid-sized customers in 140 countries. Avnet is the third largest semiconductor distributor in the world, and the largest for European chip distribution. Avnet services all levels of electronics design and development, servicing engineers with design tools, test kits, and services alongside its high-volume distribution for final designs.

Breaking Down Avnet's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Avnet's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -8.73%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Avnet's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.54%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.77%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Avnet's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.71%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.58, caution is advised due to increased financial risk.

To track all earnings releases for Avnet visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.