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Investing.com - BofA Securities raised its price target on Avnet (NASDAQ:AVT), a prominent player in the Electronic Equipment industry with a market capitalization of $4.36 billion, to $50.00 from $48.00 while maintaining an Underperform rating on the stock.
Avnet reported fourth-quarter revenue of $5.6 billion and earnings per share of $0.81, exceeding Street estimates. The company’s gross margin came in at 10.6%, below BofA’s 11.0% estimate and down approximately 100 basis points year-over-year due to a higher mix of lower-margin Asia sales. InvestingPro data confirms persistent margin challenges, identifying weak gross profit margins as a key concern, though the company maintains strong free cash flow yields.
On a constant currency basis, Avnet’s sales declined 21% year-over-year in the EMEA region. Gross margin also decreased about 50 basis points quarter-over-quarter due to product and customer mix changes.
For the first quarter of fiscal 2026, Avnet guided revenue to $5.7 billion at the midpoint, above Street expectations of $5.5 billion. However, the company projected earnings per share of $0.80 at the midpoint, below the Street consensus of $0.89.
BofA Securities maintained its Underperform rating despite encouraging signs in book-to-bill ratios and backlog improvements, citing continued margin pressure from strong Asia performance, weak catalog business at Farnell, ongoing channel inventory correction, and challenging macroeconomic conditions.
In other recent news, Avnet Inc . announced its fourth-quarter 2025 earnings, surpassing analyst expectations. The company reported an earnings per share (EPS) of $0.81, which exceeded the forecasted $0.74, marking a 9.46% surprise. Revenue also outperformed predictions, reaching $5.6 billion compared to the expected $5.36 billion. These financial results indicate a strong performance for the quarter. Despite the positive earnings and revenue figures, Avnet’s stock experienced a decline in pre-market trading, possibly due to broader market trends or specific investor concerns. The company’s results highlight its ability to exceed market projections, which is a crucial factor for investors to consider. Analyst firms continue to monitor Avnet’s performance closely, as these developments may influence future projections.
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