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Avnet (AVT – Free Report) posted a quarterly profit of $ 1.03 per share, exceeding Zacks' consensus estimate of $ 1.01 per share. This compares to a profit of $ 0.76 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 1.98%. A quarter of a month ago, it was expected that this distributor of electronic components would record a profit of $ 0.97 per share while he realized a profit of $ 0.99, a surprise of 2.06%.
In the last four quarters, the company has exceeded consensus EPS estimates four times.
Avnet, which belongs to the Zacks Electronics – Parts Distribution segment, achieved a turnover of $ 5.09 billion for the quarter ended September 2018, exceeding the consensus estimate by 1.12%. Zacks. That compares with revenues of $ 4.66 billion a year ago. The company has exceeded three times the estimated revenue by consensus over the past four quarters.
The sustainability of the immediate stock price movement based on recently published figures and future earnings forecasts will depend primarily on management's comments on the call for results.
Avnet shares have lost about 3% since the beginning of the year, versus -0.7% for the S & P 500.
What's next for Avnet?
While Avnet has underperformed the market since the beginning of the year, the question for investors is: what is the next step for the stock?
There is no simple answer to this key question, but the company's earnings outlook is a reliable measure to help investors. This includes not only the current consensus results for the coming quarters, but also how these forecasts have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in revisions to earnings estimates. Investors can track these revisions themselves or rely on a proven scoring tool such as Zacks Rank, which has impressive experience controlling revisions to earnings power estimates.
Prior to the release of these results, the trend of estimated revisions for Avnet was mixed. Although the magnitude and direction of the revisions may change as a result of the release of the company's earnings report, the current status results in a Zack ranking of 3 percent. the title. As a result, equities should evolve in line with the market in the near future. You can see the complete list of # 1 Zacks stock at the current rank (strong buy) here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year will change in the coming days. The consensus on current earnings per share is estimated at $ 0.99 on revenue of $ 4.89 billion for the coming quarter and $ 4.28 in revenue, at $ 20.04 billion for the first quarter. exercise in progress.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the security. Regarding the Zacks ranking, Electronics – Parts Distribution is currently in the last 20% of the 250 companies and more than Zacks. Our research shows that the top 50% of industries ranked by Zacks perform better than the bottom 50% by a factor greater than 2 to 1.
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