Avnet's Earnings: A Preview
On Wednesday, January 27, Avnet (NASDAQ:AVT) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts expect Avnet earnings of $0.39 per share. Revenue will likely be around $4.27 billion, according to the consensus estimate. In the same quarter last year, Avnet reported earnings per share of $0.4 on sales of $4.54 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 2.5%. Revenue would have fallen 5.84% from the same quarter last year. Here is how the Avnet's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 0.18 | 0.04 | 0.32 | 0.41 |
EPS Actual | 0.36 | 0.64 | 0.38 | 0.40 |
Revenue Estimate | 4.06 B | 3.98 B | 4.06 B | 4.42 B |
Revenue Actual | 4.72 B | 4.16 B | 4.31 B | 4.54 B |
Stock Performance
Over the last 52-week period, shares of Avnet are up 0.93%.
Do not be surprised to see the stock move on comments made during its conference call. Avnet is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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