Electronics distributor Avnet's Q1 profit beats on Farnell unit boost

Reuters10-29
Electronics distributor Avnet's Q1 profit beats on Farnell unit boost

Overview

  • Avnet fiscal Q1 sales of $5.9 bln beat analyst expectations

  • Adjusted EPS for fiscal Q1 beats consensus at $0.84

  • Company repurchased $138 mln in shares, 3.2% of shares outstanding

Outlook

  • Avnet expects Q2 fiscal 2026 sales between $5.85 bln and $6.15 bln

  • Company projects Q2 adjusted diluted EPS of $0.90 to $1.00

  • Avnet sees sequential sales growth in Americas and Asia, flat in Europe

Result Drivers

  • FARNELL AND ASIA GROWTH - Double-digit year-over-year sales growth in Farnell and Asia led to better-than-expected sales and earnings, per CEO Phil Gallagher

  • AMERICAS SALES GROWTH - Return to year-over-year sales growth in the Americas contributed to overall sales increase

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Beat

$5.90 bln

$5.73 bln (5 Analysts)

Q1 Adjusted EPS

Beat

$0.84

$0.81 (4 Analysts)

Q1 EPS

$0.61

Q1 Net Income

$51.74 mln

Q1 Gross Profit

$614.76 mln

Q1 Operating Income

$142.03 mln

Q1 Pretax Profit

$76.80 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 3 "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 $52.00, about 2.8% above its October 28 closing price of $50.54

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw6SwQn5a

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(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.)

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