Avnet stock hits all-time high after earnings beat expectations for fourth straight quarter
Phoenix-based Avnet Inc. had one of its best days on Wall Street as investors pushed its share price to an all-time high Wednesday following an earnings report that beat analysts’ expectations.
Avnet’s share price shot up 13.82% Jan. 28 in heavy trading to close at $59.96 — gaining $7.28 to set a new record high for the company’s stock (Nasdaq: AVT).
That came after the global electronics component distributor released its fiscal second quarter earnings report that pegged the company’s sales revenue at $6.3 billion, which was a more than 11% jump from $5.66 a year earlier and translated to an adjusted diluted earnings per share of $1.05.
Those results beat company guidance and Wall Street analyst expectations. Avnet’s earnings per share were more than 10.5% higher than the Zacks Consensus Estimate of 95 cents per share, while its revenue beat Zacks predictions by 5.28%. This is the fourth consecutive quarter that the stock outperformed expectations in both measures.
The momentum carries on from the previous quarter, when Avnet reported a 5% jump in revenue thanks to strong sales growth in Asia. That market continued to be a key factor this time around, with Avnet CEO Phil Gallagher highlighting during the company’s earnings call that sales from Asia grew to over 50% of total sales during Q2 compared to 48% in Q1.