Yahoo Finance Key Factors to Consider Ahead of Avnet's (AVT) Q3 Earnings
Avnet AVT is slated to report its third-quarter fiscal 2023 results on May 3 after market close.
The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.5%.
Avnet estimates fiscal third-quarter revenues in the range of $6.15-$6.45 billion (the midpoint being $6.30 billion). The Zacks Consensus Estimate for the same is pegged at $6.27 billion, suggesting a decrease of 3.3% from the year-ago quarter's reported figure.
This Phoenix, AZ-based tech company projects adjusted earnings in the band of $1.75-$1.85 per share (the midpoint being $1.80). The consensus mark for the bottom line stands at $1.78 per share, indicating a 17.2% year-over-year surge.
Our estimates for Avnet’s third-quarter revenues and non-GAAP earnings stand at $6.18 billion and $1.75 per share, respectively.
Let’s see how things have shaped up before the upcoming announcement.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote
Factors to Note
Avnet's fiscal third-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 AVT’s profitability in the to-be-reported quarter.
With Farnell becoming the exclusive licensed distributor of the Raspberry Pi single-board computer, Avnet might have witnessed the continued engagement of existing customers and new customer acquisitions in the quarter to be reported. However, currency fluctuations are likely to have impacted the Farnell business in the third quarter.
The company expects to witness solid demand across its Automotive, Transportation and Industrial segments. However, a slowdown in Asia is likely to have more than offset the benefits of the aforementioned factors. Moreover, Avnet’s overall third-quarter performance is expected to have been negatively impacted by constraints in product availability and pricing pressure.
The Zacks Consensus Estimate for the Electronic Component segment's revenues is pegged at $5.86 billion, suggesting a decrease of 2.7% year over year. The consensus mark for the Premier Farnell division's sales stands at $409 million, indicating a year-over-year decline of 12.8%.
Headwinds related to the persistent inflation and persistent disruptions from supply-chain constraints might have weighed on the company's top-and-bottom-line performance in the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Avnet this season. 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. However, that’s not the case here.
AVT carries a Zacks Rank #4 (Sell) at present and has an Earnings ESP of -0.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Skyworks Solutions SWKS, Garmin GRMN and Model N MODN have the right combination of elements to post an earnings beat in their upcoming releases.
Skyworks carries a Zacks Rank #3 and has an Earnings ESP of +0.15%. The company is scheduled to report second-quarter fiscal 2023 results on May 8. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 1.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyworks’ second-quarter earnings stands at $2.02 per share, implying a year-over-year decline of 23.2%. It is estimated to report revenues of $1.15 billion, which suggests a decrease of approximately 14% from the year-ago quarter.
Garmin is slated to report first-quarter 2023 results on May 3. The company has a Zacks Rank #3 and an Earnings ESP of +5.79% at present. Garmin’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being a negative 7.3%.
The Zacks Consensus Estimate for GRMN’s first-quarter earnings is pegged at $1.00 per share, suggesting a decline of 9.9% from the year-ago quarter’s earnings of $1.11. Garmin’s quarterly revenues are estimated to decline 7.9% year over year to $1.08 billion.
Model N carries a Zacks Rank #3 and has an Earnings ESP of +7.14%. The company is slated to report second-quarter fiscal 2023 results on May 9. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 40.8%.
The Zacks Consensus Estimate for MODN’s second-quarter earnings is pegged at 17 cents per share, indicating a year-over-year increase of 21.4%. The consensus mark for revenues stands at $59.4 million, suggesting a year-over-year increase of 11.5%.
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
Garmin Ltd. (GRMN) : Free Stock Analysis Report
Avnet, Inc. (AVT) : Free Stock Analysis Report
Skyworks Solutions, Inc. (SWKS) : Free Stock Analysis Report
Model N, Inc. (MODN) : Free Stock Analysis Report
