Avnet Inc. (AVT) shares plummeted 5.13% in pre-market trading on Wednesday after the electronic components distributor provided weaker-than-expected guidance for its fiscal fourth quarter, overshadowing better-than-anticipated third-quarter results.
For Q3, Avnet reported adjusted earnings per share of $0.84, surpassing analysts' estimates of $0.71. Revenue came in at $5.32 billion, slightly above expectations of $5.29 billion but down 6% year-over-year. However, investors focused on the company's disappointing outlook for Q4, with Avnet forecasting adjusted EPS of $0.65 to $0.75, well below the $0.90 analysts were expecting. The company also projected Q4 revenue of $5.15 billion to $5.45 billion, falling short of the $5.48 billion consensus estimate.
The weak guidance suggests Avnet continues to face challenges in the current economic environment. CEO Phil Gallagher noted that while pleased with Q3 results, the company is navigating "a highly dynamic geopolitical and market environment." The outlook implies flat sequential sales at best and potential declines in key regions like EMEA, signaling ongoing headwinds for Avnet's business in the near term.
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