Avnet Posts Solid Q2 Earnings, Raises Revenue Guidance for Q3

Avnet reported Q2 CY2025 revenue of $5.62 billion, beating Wall Street estimates, but sales were flat year on year. The company provided optimistic revenue guidance for the next quarter at $5.7 billion, 2.9% above analysts' estimates. Non-GAAP profit was $0.81 per share, 12.5% above analysts' consensus estimates.

Avnet, Inc. (NASDAQ:AVT), an electronic components distributor, reported its Q2 CY2025 financial results, which exceeded Wall Street expectations. The company's revenue for the quarter was $5.62 billion, meeting analysts' estimates, but sales remained flat year on year. Avnet's non-GAAP profit of $0.81 per share was 12.5% above analysts' consensus estimates [1].

For the next quarter, Avnet provided optimistic revenue guidance, projecting $5.7 billion, which is 2.9% above analysts' estimates. This positive outlook is supported by the company's strong performance in Asia, where revenue jumped 17.6% year on year [3]. However, sales in the Europe, Middle East, and Africa (EMEA) region declined by 16.7%, while Americas revenue decreased by 2.0% [3].

Avnet's Chief Executive Officer, Phil Gallagher, attributed the company's performance to steady growth in Asia and the return of Farnell to year-over-year growth. He expressed optimism about the recovery and the company's ability to surpass guidance [3].

Looking ahead, Avnet's stock has been volatile, with a 4.7% decline over the last month, despite strong earnings. The company's peers in the IT distribution and solutions segment have also shown mixed performance, with some reporting revenue growth and others missing estimates [2].

Avnet is heading into earnings with an average analyst price target of $51.25, compared to the current share price of $52.54 [2]. The company's stock has been in a holding pattern since December 2024, posting a small loss of 2.6% [2].

References:
[1] https://finance.yahoo.com/quote/AVT/news/
[2] https://www.tradingview.com/news/stockstory:40f339706094b:0-earnings-to-watch-avnet-avt-reports-q2-results-tomorrow/
[3] https://www.investing.com/news/earnings/avnet-beats-q4-expectations-but-shares-flat-on-soft-guidance-93CH-4173224