- Oops!Something went wrong.Please try again later.
Avnet AVT reported third-quarter fiscal 2021 non-GAAP earnings of 74 cents per share, surpassing the Zacks Consensus Estimate by 32.1%. The reported figure also increased 95% year over year.
Revenues of $4.9 billion also outpaced the Zacks Consensus Estimate by 7.9% and grew 14% year over year.
Robust sales in Asia boosted revenues for the quarter. Improvement in Americas and Europe, Middle East, and Africa (EMEA) regions also served as tailwinds.
Avnet, Inc. Price, Consensus and EPS Surprise
Avnet, Inc. price-consensus-eps-surprise-chart | Avnet, Inc. Quote
Quarter in Detail
Electronic Components segment revenues rose 13.7% year over year to $4.5 billion on strong growth across all regions.
The Farnell segment’s revenues of $396 million increased 18.2% year over year.
Revenues from the Americas declined 3.5% year over year but the same from the EMEA region grew 4.8%. Notably, Asia revenues increased 36.2% year over year.
Avnet reported gross profit of $568.4 million, up 9.5% year over year. Gross margin contracted 40 basis points (bps) to 11.6%.
Adjusted operating income was $110.5 million, increasing 57.1% year over year. Adjusted operating margin came in at 2.3%, up 62 bps.
Adjusted operating expenses rose 2% year over year to $457.8 million due to the company’s decision to keep operating its existing facility and lease distribution center.
Balance Sheet and Cash Flow
As of Apr 3, 2021, Avnet had cash and cash equivalents of $323 million compared with $376.3 million recorded at the end of the previous quarter.
Long-term debt was $895.9 million as of Apr 3, up from $895.6 million reported in the prior quarter.
Net debt leverage ratio was 2.0 at the end of the reported quarter. Operating cash flow was $197.5 million at the end of third-quarter fiscal 2021. Avnet returned $21 million to shareholders in the form of dividends in the reported quarter.
Fourth-Quarter Fiscal 2021 Guidance
Avnet estimates fiscal fourth-quarter revenues in the range of $4.7-$5.1 billion. Non-GAAP earnings for the current quarter are anticipated in the range of 71-77 cents per share.
Zacks Rank and Other Stocks to Consider
Avnet currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector include Lam Research Corporation LRCX, Micron Technology, Inc. MU and LG Display Co., Ltd. LPL, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Micron and LG Display is currently projected at 32.8%, 15.7% and 29.8%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Lam Research Corporation (LRCX) : Free Stock Analysis Report
LG Display Co., Ltd. (LPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research