(Corrects paragraph 10 to say the company is listed on the New
York Stock Exchange, not on the Nasdaq)
Jan 24 Electronic products distributor Avnet Inc
forecast current-quarter results above analysts'
estimates after reporting a better-than-expected second quarter,
sending its shares up 9 percent in premarket trading.
The company, considered a bellwether for corporate
technology spending, forecast third-quarter adjusted earnings of
81 cents to 91 cents per share, on revenue of between $5.95
billion and $6.55 billion.
Analysts on average were expecting earnings of 78 cents on
revenue of $5.95 billion, according to Thomson Reuters I/B/E/S.
"In the December quarter, technology solutions revenue
increased 36 percent sequentially ... as customers were more
willing to spend their IT budget dollars," Chief Executive Rick
Hamada said in a statement.
The technology solutions business, which accounted for 42
percent of total revenue in 2012, provides enterprise servers
Net income fell to $137.5 million in the second quarter from
$147 million a year earlier.
Excluding items, the company earned $1.01 per share, beating
analysts' expectation of 83 cents.
Revenue rose marginally to $6.7 billion, above estimates of
$6.23 billion -- the company's first beat in three quarters.
Avnet and other technology distributors such as Arrow
Electronics Inc and Ingram Micro Inc have been
hit by weak demand for the past few quarters, underscoring a
slowdown in technology spending.
Avnet shares, which gained about 15 percent in the last
three months, were up at $34.90 in premarket trading. They
closed at $32.17 on the New York Stock Exchange on Wednesday.
(Reporting by Chandni Doulatramani in Bangalore; Editing by