Earnings Beat: Avnet, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Avnet, Inc. (NASDAQ:AVT) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to US$49.72 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of US$5.3b were what the analysts expected, Avnet surprised by delivering a (statutory) profit of US$1.01 per share, an impressive 95% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Avnet after the latest results.

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After the latest results, the five analysts covering Avnet are now predicting revenues of US$23.1b in 2026. If met, this would reflect a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 30% to US$4.77. In the lead-up to this report, the analysts had been modelling revenues of US$23.4b and earnings per share (EPS) of US$4.93 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Avnet

The consensus price target held steady at US$51.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Avnet analyst has a price target of US$64.00 per share, while the most pessimistic values it at US$43.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Avnet's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Avnet.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Avnet. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Avnet's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$51.75, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Avnet going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Avnet has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.