U.S. Markets closed
  • S&P 500

    4,070.56
    +10.13 (+0.25%)
     
  • Dow 30

    33,978.08
    +28.67 (+0.08%)
     
  • Nasdaq

    11,621.71
    +109.30 (+0.95%)
     
  • Russell 2000

    1,911.46
    +8.39 (+0.44%)
     
  • Crude Oil

    79.38
    -1.63 (-2.01%)
     
  • Gold

    1,943.90
    -2.80 (-0.14%)
     
  • Silver

    23.73
    -0.30 (-1.23%)
     
  • EUR/USD

    1.0874
    -0.0018 (-0.1631%)
     
  • 10-Yr Bond

    3.5180
    +0.0250 (+0.72%)
     
  • Vix

    18.51
    -0.22 (-1.17%)
     
  • GBP/USD

    1.2395
    -0.0012 (-0.0967%)
     
  • USD/JPY

    129.8000
    -0.3530 (-0.2712%)
     
  • BTC-USD

    23,432.16
    +443.24 (+1.93%)
     
  • CMC Crypto 200

    526.66
    +9.65 (+1.87%)
     
  • FTSE 100

    7,765.15
    +4.04 (+0.05%)
     
  • Nikkei 225

    27,382.56
    +19.81 (+0.07%)
     

Avnet (AVT) to Report Q1 Earnings: Key Factors to Consider

Avnet AVT is slated to report its first-quarter fiscal 2023 results on Oct 26, after the market close.

The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 20.4%.

Avnet estimates fiscal first-quarter revenues in the range of $6.2-$6.5 billion (mid-point being $6.35 billion). The Zacks Consensus Estimate for the same is pegged at $6.35 billion, suggesting an increase of 13.7% from the year-ago quarter's reported figure.

This Phoenix, AZ-based tech company projects adjusted earnings in the band of $1.85-$1.95 per share (mid-point being $1.90). The consensus mark for the bottom line stands at $1.91 per share, indicating a 56.6% year-over-year surge.

Avnet, Inc. Price and EPS Surprise

 

Avnet, Inc. Price and EPS Surprise
Avnet, Inc. Price and EPS Surprise

Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote

Factors to Note

Avnet's fiscal first-quarter results are likely to reflect high-margin expansion for its electronic components. Specifically, America and the EMEA are anticipated to have registered higher revenues, which typically generate high margins. This might have boosted its profitability in the to-be-reported quarter.

With critical updates in Farnell's e-commerce platform, Avnet might have witnessed continued engagement of existing customers and new customer acquisitions in the quarter to be reported. The company expects to witness solid demand across its Automotive, Transportation, Industrial and Aerospace & Defense segments.

The Zacks Consensus Estimate for the Electronic Component segment's revenues is pegged at $5.89 billion, suggesting an increase of 14.8% year over year. The consensus mark for the Premier Farnell division's sales stands at $464 million, indicating 2% year-over-year growth.

However, headwinds related to the Russia-Ukraine conflict, inflation and persistent disruption from supply-chain constraints might have weighed on the company's top and bottom-line performance in the quarter to be reported.

Earnings Whispers

Our proven model predicts an earnings beat for Avnet this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.91 per share) and the Zacks Consensus Estimate ($1.91 per share), is +0.26%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: AVT carries a Zacks Rank #3.

Other Stocks With a Favorable Combination

Per our model, Equinor EQNR, Kimbell Royalty KRP and Murphy USA MUSA also have the right combination of elements to post an earnings beat in their upcoming releases.
 
Equinor has an Earnings ESP of +25.07% and sports a Zacks Rank #1. The company is anticipated to report its third-quarter 2022 results on Oct 26. Equinor’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
The Zacks Consensus Estimate for EQNR’s third-quarter earnings is pegged at $1.78 per share, indicating a 109.4% surge from the year-ago quarter’s 85 cents per share. The consensus mark for revenues stands at $57.68 billion, suggesting a year-over-year increase of 147.9%.
 
Kimbell Royalty has an Earnings ESP of +21.88% and currently sports a Zacks Rank #1. The company is slated to report its third-quarter 2022 results on Nov 3. Kimbell’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters and missed on the other two occasions, the average surprise being 34.4%.
 
The Zacks Consensus Estimate for Kimbell’s third-quarter earnings stands at 32 cents per share, implying a year-over-year increase of 700%. KRP is estimated to report revenues of $67.8 million, which suggests a surge of 113.1% from the year-ago quarter.
 
Murphy has an Earnings ESP of +12.68% and carries a Zacks Rank #1 at present. The company is slated to report third-quarter 2022 results on Oct 26. Murphy’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 49%.
 
The Zacks Consensus Estimate for quarterly earnings is pegged at $7.82 per share, suggesting a year-over-year increase of 96.5%. MUSA’s quarterly revenues are estimated to increase 29.7% year over year to $5.96 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Avnet, Inc. (AVT) : Free Stock Analysis Report
 
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
 
Kimbell Royalty (KRP) : Free Stock Analysis Report
 
Equinor ASA (EQNR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research