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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Style ...

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Avnet (AVT) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.Avnet is one of 611 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. ...

Have you been paying attention to shares of Avnet (AVT) ? Shares have been on the move with the stock up 26.5% over the past month. The stock hit a new 52-week high of $63.1 in the previous session. Avnet has gained 29.8% since the start of the year compared to the 27.8% move for the Zacks Computer and Technology sector and the 38.4% return for the Zacks Electronics - Parts Distribution industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File #1-4224 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction (IRS Employer of incorporati ...

Key Takeaways Avnet posted Q2 EPS of $1.05, topping estimates by 10.53% and increasing 20.7% year over year.Q2 sales rose 11.6% to $6.32 billion, driven by Electronic Components and Farnell segment gains.Shares surged 13.8% as Avnet's Q3 revenue and EPS guidance surpassed analyst expectations.Avnet, Inc. (AVT) shares jumped 13.8% on Wednesday after the company reported better-than-expected second-quarter fiscal 2026 results. The company’s second-quarter adjusted earnings of $1.05 per share surpassed the Zac ...

Core Insights - Avnet reported second-quarter fiscal 2026 results that exceeded the high end of the company's sales and earnings guidance, driven by record revenue in Asia and improved demand across multiple end markets [5][7] Financial Performance - Adjusted operating income was $172 million with a total adjusted operating margin of 2.7% [1] - Sales reached $6.3 billion, representing a 12% year-over-year increase and a 7% sequential increase, surpassing guidance [3][7] - Adjusted diluted earnings per share (EPS) were $1.05, exceeding the high end of guidance for the quarter [7] - Gross margin was reported at 10.5%, described as "flattish" year-over-year and slightly up sequentially [2] Segment Performance - Electronic components generated an operating income of $187 million with a 3.2% operating margin, while Farnell produced an operating income of $20 million with a 4.7% operating margin, the latter being the highest since fiscal 2023 [1][4] - Farnell's gross margins improved by over 100 basis points year-over-year but decreased by 25 basis points sequentially [2] Regional Highlights - Asia sales exceeded $3 billion, marking the sixth consecutive quarter of year-over-year growth and now account for over 50% of total sales [3][12] - Sales in Europe increased year-over-year and sequentially, with clear signs of recovery noted [13] - The Americas also saw sales growth for the second consecutive quarter, led by aerospace and defense [14] Demand and Supply Chain Dynamics - Demand signals are resetting higher, particularly driven by data center and AI demand, with lead times trending upward across most product categories [9][10] - The pricing environment remained stable, although spot price increases were noted in some areas, indicating potential upward pricing pressure as supply tightens [11] Working Capital and Inventory Management - Working capital improved with inventory reduced by $126 million, resulting in 86 days of inventory at quarter-end [6][18] - The company aims to reduce total inventory days to below 80 [18] Guidance and Outlook - For Q3 fiscal 2026, sales are guided to be between $6.2 billion and $6.5 billion, with diluted EPS expected to be between $1.20 and $1.30, implying modest sequential growth [20][21] - The guidance reflects anticipated growth in the Americas and EMEA, with a slight seasonal decline in Asia due to the Lunar New Year [21]

Financial Data and Key Metrics Changes - The company achieved sales of $6.3 billion in the second quarter, representing a 12% year-over-year increase and a 7% sequential increase [13][4] - Adjusted diluted earnings per share were $1.05, exceeding the high end of guidance and growing nearly four times compared to the previous quarter [16][21] - Operating margin for electronic components was 3.2%, while Farnell's operating margin was 4.7%, marking the highest for Farnell since fiscal 2023 [16][11] Business Line Data and Key Metrics Changes - Electronic components sales increased by 11% year-over-year and 7% sequentially, with a constant currency increase of 9% year-over-year [13][14] - Farnell sales grew by 24% year-over-year and 7% sequentially, with a constant currency increase of 20% year-over-year [14][10] - Demand creation revenues increased sequentially by 7%, indicating positive trends in converting design wins into revenues [9] Market Data and Key Metrics Changes - Sales in Asia reached a record high of over $3 billion, marking the sixth consecutive quarter of year-on-year sales growth in the region [8][13] - Year-over-year sales increased by 17% in Asia, 8% in Europe, and 5% in the Americas [13] - The pricing environment remained stable, but upward pricing pressure is anticipated across many technologies due to supply dynamics [7][34] Company Strategy and Development Direction - The company is focused on expanding operating margins, optimizing inventory, and generating cash flow while making necessary investments for future growth [5][12] - There is an emphasis on improving return on working capital and overall return on invested capital [20][19] - The company aims to leverage its diverse supplier line card and customer base to drive profitable growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong demand signals and improving visibility into customer orders [6][29] - The company anticipates continued growth and margin expansion in 2026, supported by a recovering market and improved operational leverage [12][21] - Management noted that the demand for electronic components is broadening, driven by sectors such as data centers and artificial intelligence [5][6] Other Important Information - The company generated $208 million in cash flow from operations during the quarter and reduced inventory by $126 million [20][17] - The company paid a quarterly dividend of $0.35 per share, totaling $28 million [21] - Guidance for the third quarter of fiscal 2026 includes sales in the range of $6.2 billion to $6.5 billion and diluted earnings per share between $1.20 and $1.30 [21] Q&A Session Summary Question: Can you discuss the linearity of orders during the quarter and the duration of your backlog? - Management noted that bookings typically tail off in December, but billings continue, indicating a positive trend in order visibility and customer engagement [25][26][29] Question: What are the pricing pressures in specific end markets? - Management indicated that while pricing has remained stable, there are signs of upward pressure in memory, storage, and certain capacitors, driven by increased demand from data centers [34][49] Question: How do you expect the March quarter to perform relative to seasonality? - Management expects a typical seasonal bounce back in the West, with high single-digit growth anticipated, while Asia may see a less than seasonal decline due to Lunar New Year [38][45] Question: Can core business margins grow year-over-year for the remaining quarters? - Management expressed confidence in margin expansion as the West recovers, with expectations for continued momentum in operating margins [45][46] Question: How does pricing from suppliers impact revenues and margins? - Management explained that pricing affects average selling prices, with contracted customers absorbing price increases, while spot buys can lead to improved margins [48][49]