Electronics and IT distributor
) recently announced the expansion of its agreement with
) to distribute its high-value specialty data center products in
Latin America and the Caribbean. Since Cisco is the largest
networking company in the world, with products ranging from
switches and routers to security solutions and its unified
computing system (UCS), the expansion further strengthens Avnet's
core business of distributing electronic components.
The agreement will help Avnet to provide its channel partners
with better solutions for data centers. It will also enable Avnet
to provide independent software vendor (ISV), system integrator
(SI), and value-added reseller (VAR) partners with technical
expertise, training and development and financial and logistics
services, thus improving Avnet's revenue stream and possibly its
Avnet reported revenue of $6.59 billion, up 4.5% from $6.31
billion in the year-ago quarter. Revenues in the quarter were
toward the higher end of management's guidance range of $6.15
billion to $6.75 billion and above the Zacks Consensus Estimate
of $6.46 billion.
Avnet Inc. (AVT or the company), based in Phoenix, AZ, is an
industrial distributor of electronic components, enterprise
computer and storage products and embedded subsystems. Avnet
distributes electronic components and computer products as
received from suppliers. It also provides engineering design,
materials management and logistics services, system integration,
and configuration and supply chain advisory services.
Avnet's leading position in electronics distribution,
continuous cost cutting initiatives and acquisition synergies are
encouraging. It does however see significant competition for both
its domestic and foreign operations, especially from archrival
Arrow Electronics Inc.
Currently, Avnet has a Zacks Rank #3 (Hold). Investors may also
consider stocks from the same sector such as
) with a Zacks Rank #1 (Strong Buy).
ARROW ELECTRONI (ARW): Free Stock Analysis
AVNET (AVT): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis
QUANTUM CP-DSSG (QTM): Free Stock Analysis
To read this article on Zacks.com click here.