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Have you looked into how Avnet (AVT) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this distributor of electronic components, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of AVT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $5.66 billion, declining 8.7% year over year. Now, let's delve into AVT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at AVT's Revenue Streams Abroad
During the quarter, Asia contributed $2.71 billion in revenue, making up 47.88% of the total revenue. When compared to the consensus estimate of $2.32 billion, this meant a surprise of +17.11%. Looking back, Asia contributed $2.61 billion, or 46.50%, in the previous quarter, and $2.5 billion, or 40.34%, in the same quarter of the previous year.
EMEA accounted for 27.95% of the company's total revenue during the quarter, translating to $1.58 billion. Revenues from this region represented a surprise of -15.31%, with Wall Street analysts collectively expecting $1.87 billion. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $1.67 billion (29.77%) and $2.11 billion (34.06%) to the total revenue, respectively.
Revenue Forecasts for the International Markets
Wall Street analysts expect Avnet to report $5.38 billion in total revenue for the current fiscal quarter, indicating a decline of 4.9% from the year-ago quarter. Asia and EMEA are expected to contribute 43.5% ($2.34 billion) and 34.8% ($1.87 billion) to the total revenue, respectively.