Avnet
The 10-second takeaway
For the quarter ended Sep. 29 (Q1), Avnet met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins were steady, operating margins contracted, net margins shrank.
Revenue details
Avnet tallied revenue of $5.87 billion. The eight analysts polled by S&P Capital IQ wanted to see a top line of $5.89 billion on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $6.43 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.59. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.70 for Q1 were 22% lower than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 11.7%, about the same as the prior-year quarter. Operating margin was 1.7%, 180 basis points worse than the prior-year quarter. Net margin was 1.7%, 50 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $6.27 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $24.56 billion. The average EPS estimate is $3.25.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 238 members out of 254 rating the stock outperform, and 16 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Avnet a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avnet is outperform, with an average price target of $37.63.
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