Electronic parts distributor,
Avnet Inc.
's (
AVT
) business segment, Avnet Electronics Marketing Americas, recently
entered into a distribution agreement with congatec, Inc. through
its operating unit, Avnet Embedded. The company will be now engaged
in providing a range of congatec's computer-on-modules (COM) which
includes Qseven, COM Express, XTX and ETX to its clients in
Americas.
In addition, the company's customers will also be able to access
various types of applications in the field of medical, automotive,
aerospace and transportation through a low energy, reduced cost and
small form factor portals. Avnet shall also render various support
services such as regulatory compliance, board support package
services, performance testing solutions, prototype and first
article builds to its clients. The contract is expected to broaden
congatec's coverage and product portfolio in the market of the
Americas.
The company's expansion plans comprising extension of the
existing operations and adding new products to its product lines,
particularly in the growing markets, are expected to boost its
long-term potential. During the fourth quarter of fiscal 2012,
revenues from Avnet's Electronics Marketing (EM) segment declined
5.0% from the year-ago quarter to $3.76 billion, within
management's guidance range of $3.75 billion - $4.05 billion.
However, we can still be optimistic about a better performance from
this segment in the upcoming quarters. For the first quarter of
fiscal 2013, the segment's sales are likely to be within the range
of $3.55 billion - $3.85 billion.
Avnet faces fierce competition from big players in the
semiconductor industry. One of the stalwarts here is
Arrow Electronics Inc.
(
ARW
), which remains an immensely formidable rival, especially in the
current times. In addition, there are several other big players
such as
Wesco International Inc.
(
WCC
) and
Anixter International Inc.
(
AXE
) in the industry.
The current Zacks Consensus Estimates for the first quarter of
fiscal 2013 and for fiscal 2013 are 84 cents and $4.11,
representing year-over-year growth of (6.79%) and 1.33%,
respectively. The company currently retains a Zacks #4 Rank, which
translates into a short-term 'Sell' rating. However, we are
maintaining a long-term 'Neutral' recommendation on the stock.
ARROW ELECTRONI (ARW): Free Stock Analysis
Report
AVNET (AVT): Free Stock Analysis Report
ANIXTER INTL (AXE): Free Stock Analysis Report
WESCO INTL INC (WCC): Free Stock Analysis
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