Preview: Avnet's Earnings


Avnet AVT releases its next round of earnings this Wednesday, April 28. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.56 and sales around $4.59 billion. Avnet earnings in the same period a year ago was $0.38 per share. Quarterly sales came in at $4.31 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 47.37%. Sales would be have grown 6.5% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2021 Q1 2020 Q4 2020 Q3 2020
EPS Estimate 0.39 0.18 0.04 0.32
EPS Actual 0.48 0.36 0.64 0.38
Revenue Estimate 4.27 B 4.06 B 3.98 B 4.06 B
Revenue Actual 4.67 B 4.72 B 4.16 B 4.31 B

Stock Performance

Over the last 52-week period, shares are up 46.12%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Avnet is scheduled to hold the call at 16:30:00 ET and can be accessed here.

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