Yahoo Finance Avnet (AVT) to Report Q2 Earnings: What's in the Offing?
Avnet AVT is slated to report its second-quarter fiscal 2023 results on Feb 1, after the market close.
The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.4%.
Avnet estimates fiscal second-quarter revenues in the range of $6.35-$6.65 billion (mid-point being $6.50 billion). The Zacks Consensus Estimate for the same is pegged at $6.48 billion, suggesting an increase of 10.5% from the year-ago quarter's reported figure.
This Phoenix, AZ-based tech company projects adjusted earnings in the band of $1.80-$1.90 per share (mid-point being $1.85). The consensus mark for the bottom line stands at $1.83 per share, indicating a 21.2% year-over-year surge.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote
Factors to Note
Avnet's fiscal second-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 Farnell becoming the exclusive licensed distributor of the Raspberry Pi single-board computer, Avnet might have witnessed continued engagement of existing customers and new customer acquisitions in the quarter to be reported. However, currency fluctuations are likely to impact Farnell business in the second-quarter.
The company expects to witness solid demand across its Automotive, Transportation, Industrial and Aerospace & Defense segments. Avnet expects a positive operating cash flow in the second quarter, driven by seasonal declines in sales from western regions.
The Zacks Consensus Estimate for the Electronic Component segment's revenues is pegged at $6.04 billion, suggesting an increase of 11.4% year over year. The consensus mark for the Premier Farnell division's sales stands at $432 million, indicating a year-over-year decline of 2%.
Headwinds related to the persistent 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.
What Our Model States
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. But that’s not the case here.
AVT has an Earnings ESP of -1.82% and a Zacks Rank #4 (Sell). 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, Expedia Group EXPE, Lumentum LITE and PattersonUTI Energy PTEN have the right combination of elements to post an earnings beat in their upcoming releases.
Expedia has an Earnings ESP of +7.34% and sports a Zacks Rank #1. The company is scheduled to report its fourth-quarter 2022 results on Feb 9. Expedia’s earnings surpassed the Zacks Consensus Estimate thrice in each of the trailing four quarters and missed on one occasion, the average surprise being negative 10%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s fourth-quarter earnings is pegged at $1.85 per share, indicating a 74.5% surge from the year-ago quarter’s $1.06 per share. The consensus mark for revenues stands at $2.68 billion, suggesting a year-over-year increase of 17.7%.
Lumentum has an Earnings ESP of +6.02% and currently sports a Zacks Rank #1. The company is slated to report its second-quarter fiscal 2023 results on Feb 9. LITE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.8%.
The Zacks Consensus Estimate for Lumentum’s fourth-quarter earnings stands at $1.33 per share, implying a year-over-year decrease of 16.9%. LITE is estimated to report revenues of $506.1 million, which suggests a surge of 13.3% from the year-ago quarter.
PattersonUTI Energy has an Earnings ESP of +5.53% and flaunts a Zacks Rank #1 at present. The company is slated to report fourth-quarter 2022 results on Feb 8. PattersonUTI’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 169.2%.
The Zacks Consensus Estimate for quarterly earnings is pegged at 43 cents per share, suggesting a year-over-year increase of 213.2%. PTEN’s quarterly revenues are estimated to increase 62.8% year over year to $759.5 million.
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
Patterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report
