Avnet (AVT) Down 2.1% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Avnet (AVT). Shares have lost about 2.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Avnet due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Avnet, Inc. before we dive into how investors and analysts have reacted as of late.Avnet's Q1 Earnings and Revenues Beat EstimatesAvnet reported better-than-expected results for the first quarter of fiscal 2026. The company’s first-quarter earnings of 84 cents per share surpassed the Zacks Consensus Estimate by 3.7%. However, the bottom line declined 8.7% on a year-over-year basis.Net sales increased 5.3% year over year to $5.9 billion and outpaced the consensus mark by 3.5%. The year-over-year growth was primarily driven by strong sales across the company’s operating segments.Avnet’s Q1 2025 DetailsThe Electronic Components segment’s revenues were up 4.6% year over year and 5.1% sequentially to $5.5 billion. Our estimate for the Electronic Components segment’s revenues was pegged at $5.34 billion.Farnell sales soared 14.9% year over year and 3.2% sequentially to $398.9 million. Our estimate for the Farnell segment’s revenues was pegged at $360.4 million.From a regional perspective, on a year-over-year basis, sales increased 9.9% in Asia to $2.86 billion and 3% in the Americas to $1.37 billion. However, sales in the EMEA declined marginally by 0.1% to $1.67 billion.The adjusted operating income came in at $150.7 million, which decreased 10.8% year over year. The adjusted operating income for the Electronic Components segment declined 19.5% to $159 million, while that for Farnell’s jumped ninefold to $17.1 million from $1.9 million in the year-ago quarter.Avnet’s adjusted operating margin shrank 46 basis points (bps) to 2.6% from the year-ago quarter. Electronic Components’ adjusted operating margin contracted 86 bps to 2.9%, while Farnell’s improved 375 bps to 4.3%.AVT’s Balance Sheet & Cash FlowAs of Sept. 27, 2025, AVT had cash and cash equivalents of $175.5 million compared with $192.4 million reported as of June 28, 2025.The long-term debt was $2.79 billion as of Sept. 27, 2025, lower than $2.57 billion at the end of the previous quarter. Avnet used $144.6 million of cash for operational activities during the reported quarter.In the fiscal first quarter, Avnet repurchased approximately $138.3 million worth of shares and paid $28.5 million in dividends.Avnet Initiates Q2 GuidanceFor the second quarter of fiscal 2026, Avnet anticipates revenues in the range of $5.85-$6.15 billion (midpoint of $6 billion).AVT expects non-GAAP earnings between 90 cents and $1 per share.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -6.25% due to these changes.VGM ScoresAt this time, Avnet has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Avnet has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avnet, Inc. (AVT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks