Avnet Q1 revenue jumps 82%, beats analyst estimates

Overview

• US technology distributor's fiscal Q1 revenue rose 82%, beating analyst expectations

• Adjusted diluted EPS for fiscal Q1 more than quadrupled, beating analyst expectations

• Company cites strong demand across industrial, aerospace, defense, transportation and AI sectors

Outlook

• Avnet sees Q2 sales of $11.1 bln to $11.4 bln

• Company expects Q2 adjusted diluted EPS of $3.90 to $4.10

• Avnet says Q2 guidance assumes similar supply of electronic components as Q1

Result Drivers

• EXTRA WEEK - Co said sales growth was partly due to an extra week in the quarter

• EXPENSE MANAGEMENT - Co said it managed expenses and working capital diligently during the quarter

• SEGMENT MARGIN IMPROVEMENT - Electronic Components and Farnell operating margins expanded 189 bps and 576 bps yr/yr respectively

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for Avnet, Inc. is $112.50, about 26.8% above its November 3 closing price of $88.73

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)