Analysts Estimate Avnet (AVT) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Avnet (AVT) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on January 31, 2024 [1][2]. Financial Expectations - The consensus estimate for quarterly earnings is $1.39 per share, reflecting a year-over-year decrease of 30.5% [2]. - Expected revenues are projected at $6.15 billion, down 8.4% from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised 1.85% lower in the last 30 days, indicating a reassessment by analysts [2]. - The Most Accurate Estimate for Avnet is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [4]. - Avnet currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Avnet exceeded the expected earnings of $1.50 per share, achieving $1.61, resulting in a surprise of +7.33% [7]. - Over the past four quarters, Avnet has consistently beaten consensus EPS estimates [7]. Conclusion - Avnet does not appear to be a compelling candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered by investors [8].