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Avnet (AVT) Reliance on International Sales: What Investors Need to Know
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Have you evaluated the performance of Avnet's (AVT - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this distributor of electronic components, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing AVT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $5.56 billion, experiencing a decline of 15.1% year over year. Next, we'll explore the breakdown of AVT's international revenue to understand the importance of its overseas business operations.
A Dive into AVT's International Revenue Trends
EMEA accounted for 34.5% of the company's total revenue during the quarter, translating to $1.92 billion. Revenues from this region represented a surprise of -0.61%, with Wall Street analysts collectively expecting $1.93 billion. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $2.05 billion (36.3%) and $2.45 billion (37.4%) to the total revenue, respectively.
During the quarter, Asia contributed $2.29 billion in revenue, making up 41.2% of the total revenue. When compared to the consensus estimate of $2.07 billion, this meant a surprise of +10.84%. Looking back, Asia contributed $2.2 billion, or 38.9%, in the previous quarter, and $2.37 billion, or 36.2%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
Wall Street analysts expect Avnet to report a total revenue of $5.4 billion in the current fiscal quarter, which suggests a decline of 14.8% from the prior-year quarter. Revenue shares from EMEA and Asia are predicted to be 36.5% and 39.9%, corresponding to amounts of $1.97 billion and $2.16 billion, respectively.
For the full year, the company is expected to generate $22.77 billion in total revenue, down 4.2% from the previous year. Revenues from EMEA and Asia are expected to constitute 35.6% ($8.11 billion) and 38.9% ($8.86 billion) of the total, respectively.
Final Thoughts
Relying on international markets for revenues, Avnet faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Image: Bigstock
Avnet (AVT) Reliance on International Sales: What Investors Need to Know
Have you evaluated the performance of Avnet's (AVT - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this distributor of electronic components, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing AVT's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $5.56 billion, experiencing a decline of 15.1% year over year. Next, we'll explore the breakdown of AVT's international revenue to understand the importance of its overseas business operations.
A Dive into AVT's International Revenue Trends
EMEA accounted for 34.5% of the company's total revenue during the quarter, translating to $1.92 billion. Revenues from this region represented a surprise of -0.61%, with Wall Street analysts collectively expecting $1.93 billion. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $2.05 billion (36.3%) and $2.45 billion (37.4%) to the total revenue, respectively.
During the quarter, Asia contributed $2.29 billion in revenue, making up 41.2% of the total revenue. When compared to the consensus estimate of $2.07 billion, this meant a surprise of +10.84%. Looking back, Asia contributed $2.2 billion, or 38.9%, in the previous quarter, and $2.37 billion, or 36.2%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
Wall Street analysts expect Avnet to report a total revenue of $5.4 billion in the current fiscal quarter, which suggests a decline of 14.8% from the prior-year quarter. Revenue shares from EMEA and Asia are predicted to be 36.5% and 39.9%, corresponding to amounts of $1.97 billion and $2.16 billion, respectively.For the full year, the company is expected to generate $22.77 billion in total revenue, down 4.2% from the previous year. Revenues from EMEA and Asia are expected to constitute 35.6% ($8.11 billion) and 38.9% ($8.86 billion) of the total, respectively.
Final Thoughts
Relying on international markets for revenues, Avnet faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Currently, Avnet holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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