) operating unit, Avnet Electronics Marketing Americas, recently
entered into a distribution contract with
Measurement Specialties, Inc.
). This will introduce Measurement Specialties' wide range of
packaged sensors services to Avnet's distribution channel
database catering to the needs of its comprehensive clientele in
the field of industrial, medical, defense/aerospace, test and
measurement and transportation.
Avnet shall render various technical support solutions for
upgrading Measurement Specialties' latest plug and play sensors
product lines which help system designers to generate systems
that are less costly and energy-efficient. With the venture,
Measurement Specialties' will be able to extend its coverage and
efficiently address the need of more customers.
Management was appeased regarding its decision to conflate
with Measurement Specialties, as this agreement would help
Avnet's clients to easily deploy Measurement Specialties'
embedded and off-the-board sensor solutions, which are primarily
required for critical monitoring, feedback and control and input
ability. Measurement Specialties' energy-efficient plug and play
sensor solutions services are expected to provide easier and less
costly solutions to the company's customers.
The company's continuous contract wins and strategic
acquisitions are expected to boost its long-term potential.
Recently the company reported revenues of $5.87 billion, down
8.7% year over year and nearly 7% sequentially. The
year-over-year decline was caused by the company's weak
businesses, especially in the Western region. The revenues in the
quarter, however, were within management's guidance range of
$5.80 billion to $6.40 billion. Revenues from Electronics
Marketing (EM) declined 4.3% from the year-ago quarter to $3.65
billion; within management's guidance range of $3.55 billion -
$3.85 billion. The annual decline was due to the weak industrial
Avnet's domestic and foreign operations are subject to
significant competitive pressures. It faces stiff competition
Arrow Electronics Inc
), which remains a fiercely formidable rival. Arrow's operating
unit, Arrow Enterprise Computing Solutions (ECS), recently signed
a distribution agreement with Emerson Network Power. The venture
undertaken is to directly distribute Emerson's real-time
infrastructure optimization Trellis portal in order to improve
the efficacy of the data center. Hence, the company must excel in
terms of product quality and innovation, customer service,
technical and computing capabilities and price
The current Zacks Consensus Estimates for the second quarter
of fiscal 2013 and for fiscal 2013 are 82 cents and $3.09,
representing year-over-year growth of (28.60%) and (23.92%),
respectively. The company currently retains a Zacks #5 Rank,
which translates into a short-term 'Strong Sell' rating. However,
we are maintaining a long-term 'Underperform' recommendation on
ARROW ELECTRONI (ARW): Free Stock Analysis
AVNET (AVT): Free Stock Analysis Report
MEASUREMNT SPCL (MEAS): Free Stock Analysis
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