(AVT) - Avnet, Inc. - produced an 80.7% year-over-year earnings improvement

Avnet, Inc. (AVT), a Zacks #1 Rank stock, topped analysts' earnings estimates in five out of the past six quarters by an average margin of 10%. Earnings per share are forecasted to grow 16.1% over the next 3-5 years. The company has a price-to-book ratio of 1.2, compared to 5.5 for the market. Its PEG ratio currently sits at 0.62. Full Analysis Avnet, Inc. is an industrial distributor of electronic components, enterprise network and computer products, software and embedded subsystems. The company serves customers in 70 countries. AVT has been fairly successful of late in exceeding analysts' earnings expectations. The company topped the consensus estimate in five out of the past six quarters by an average margin of 10%. On Oct 26, the company beat the Street's estimate of 52 cents by 7.7% when it posted first-quarter fiscal 2007 profits of 56 cents per share. Earnings in the prior-year period came in at 31 cents, thus, AVT produced an 80.7% year-over-year improvement. Revenues jumped 11.6% to $3.65 billion from $3.27 billion. The company's solid first quarter was fueled by electronics marketing sales in Asia, Europe and the Middle East. Chairman and Chief Executive Officer Roy Vallee stated, “This performance continues to demonstrate the leverage in our business model, but what is more impressive is the consistency across the company as this is the third quarter in a row where all regions in both operating groups drove year-over-year improvement in operating margin.” AVT increased revenues and grew profits for the past four years, most recently by 28.8% and 21.6%, respectively, in fiscal 2006. The company succeeded in expanding gross margins for three years running, including a 26.1% jump last year. Looking ahead, AVT projects second-quarter consolidated sales to be between $3.83 billion and $4.03 billion. Earnings per share are expected to be in the range of 58 cents to 64 cents, compared to 50 cents in the same period last year. Over the next 3-5 years, earnings per share are forecasted to grow at a 16.1% clip. The consensus estimate for this quarter currently resides at 61 cents and represents a 10.9% increase over the past seven days. Profit forecasts for full year have risen 3.7% to $2.27 over the same period of time. AVT is currently trading at a valuation of 10.3x trailing 12-month earnings and at 9.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.2, compared to 5.5 for the market. Its PEG ratio currently sits at 0.62. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home