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Avnet (AVT) to Report Q3 Earnings: What's in the Cards?
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Avnet Inc. (AVT - Free Report) is set to report third-quarter 2017 results on Apr 27. Last quarter, the company posted a positive earnings surprise of 2.67%. Let's see how things are shaping up for this announcement.
Factors at Play
Avnet posted mixed results for the second quarter of fiscal 2017, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same. However, both earnings and revenues increased on a year-over-year basis.
Note that Avnet has been taking major restructuring steps to primarily focus on the EM business. Recently, Avnet completed the divesture of its Technology Solutions business to Tech Data Corporation . The divestment of the Technology Solution division will allow Avnet to focus on high-growth areas such as marketing electronic components and related products in the supply chain. The company intends to use its resources to make investments in embedded solutions, IoT and critical digital platforms as well as expand its footprint in newer markets.
Also, Avnet in a recent collaboration with U.S. telecom giant AT&T Inc. announced the integration of AT&T’s Internet of Things (IoT) managed services with Avnet’s Global LTE IoT Starter Kit. We believe that the new agreement will enable Avnet to scale up its business and enhance service offerings that garner significant market traction.
Nonetheless, a significant portion of Avnet’s revenues comes from the sale of semiconductors, a cyclical industry, characterized by changes in technology and manufacturing capacity and subject to significant market upturns and downturns. Intensifying competition from Arrow Electronics Inc. also remains a headwind.
Our proven model does not conclusively show that Avnet will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Avnet's ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at 86 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank:Avnet’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Western Digital Corporation (WDC - Free Report) , with an Earnings ESP of +2.16% and a Zacks Rank #1.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
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Avnet (AVT) to Report Q3 Earnings: What's in the Cards?
Avnet Inc. (AVT - Free Report) is set to report third-quarter 2017 results on Apr 27. Last quarter, the company posted a positive earnings surprise of 2.67%. Let's see how things are shaping up for this announcement.
Factors at Play
Avnet posted mixed results for the second quarter of fiscal 2017, wherein the bottom line beat the Zacks Consensus Estimate but the top line missed the same. However, both earnings and revenues increased on a year-over-year basis.
Note that Avnet has been taking major restructuring steps to primarily focus on the EM business. Recently, Avnet completed the divesture of its Technology Solutions business to Tech Data Corporation . The divestment of the Technology Solution division will allow Avnet to focus on high-growth areas such as marketing electronic components and related products in the supply chain. The company intends to use its resources to make investments in embedded solutions, IoT and critical digital platforms as well as expand its footprint in newer markets.
Also, Avnet in a recent collaboration with U.S. telecom giant AT&T Inc. announced the integration of AT&T’s Internet of Things (IoT) managed services with Avnet’s Global LTE IoT Starter Kit. We believe that the new agreement will enable Avnet to scale up its business and enhance service offerings that garner significant market traction.
Nonetheless, a significant portion of Avnet’s revenues comes from the sale of semiconductors, a cyclical industry, characterized by changes in technology and manufacturing capacity and subject to significant market upturns and downturns. Intensifying competition from Arrow Electronics Inc. also remains a headwind.
Avnet, Inc. Price and EPS Surprise
Avnet, Inc. Price and EPS Surprise | Avnet, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Avnet will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Avnet's ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate stand at 86 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank:Avnet’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Seagate Technology plc (STX - Free Report) , with an Earnings ESP of +3.77% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Western Digital Corporation (WDC - Free Report) , with an Earnings ESP of +2.16% and a Zacks Rank #1.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>