Core Insights - Avnet Inc. (AVT) has shown improvement in Q1 FY26 with a notable increase in revenue and a positive book-to-bill ratio, indicating a potential turnaround for the company [1]. Financial Performance - The company has experienced unspectacular performance in previous quarters, but the recent quarter has provided the revenue growth that analysts have been anticipating [1]. Market Position - The increase in the book-to-bill ratio suggests that Avnet is gaining traction in its market, which could signal a recovery or growth phase for the company [1].

Navitas expands globally with Avnet building on its existing Avnet Silica (Europe) relationship, to support high-growth high-power markets such as AI data centers, performance computing, energy and grid infrastructure and industrial electrification Navitas Expands Global Distribution Network with Avnet Navitas expands globally with Avnet building on its existing Avnet Silica (Europe) relationship, to support high-growth high-power markets such as AI data centers, performance computing, energy and grid inf ...

PresentationAll right. Everyone, it's so nice to be back up on stage, and I'm so pleased to welcome Avnet with us this afternoon. I'm joined by Phil Gallagher, CEO and Ken Jacobson, CFO, and we're going to have a very enlightening discussion, so hold on to your seats, guys. We're going to start off as an introduction and just take a few minutes for Phil and Ken to describe to us what Avnet is and what Avnet does.Philip GallagherCEO, President of Electronic Components, Member of Executive Board & Director Th ...

Summary of Avnet Conference Call Company Overview - **Company Name**: Avnet - **Industry**: Semiconductor Distribution - **Headquarters**: Phoenix, Arizona - **Founded**: 1921 in New York - **Revenue**: Approximately $24-$25 billion globally - **Geographic Revenue Distribution**: - Asia-Pacific: 45%-50% - Europe: 30%-35% - Americas: 20%-25% - **Employee Count**: Approximately 15,000 globally - **Customer Base**: Roughly 100,000 core customers, with 450,000 to 500,000 total customers worldwide - **Product Lines**: 250 product lines, with 80% of business in semiconductors and 20% in interconnect passive electromechanical (IP&E) components Core Business Insights - **Competitive Advantages**: - Strong company culture and relationships in distribution [8] - Global footprint allowing flexibility in supply chain management [9] - Diverse line card featuring top semiconductor brands like Broadcom and AMD [10] - Significant investment in digital capabilities, with 68% of engineers starting their design searches online [11] - **Financial Health**: Strong balance sheet with ample capacity to support customer needs [12] Market Conditions and Strategic Focus - **Current Market Cycle**: The current cycle is characterized by global factors and inventory issues, differing from past cycles like the tech bubble of 1999-2001 [15][17] - **Recovery Outlook**: Encouraging signs of recovery with increasing bookings and backlog, particularly in Asia-Pacific [19][25] - **Regional Performance**: - Asia-Pacific: Five consecutive quarters of year-on-year growth [25] - Europe: Historically the most profitable region, showing signs of recovery [26] - Americas: First quarter of year-on-year growth since 2023 [26] Farnell's Role - **Farnell Overview**: Contributes 20% of operating income despite being only 6% of revenue; critical for digital e-commerce front-end [28] - **Growth Potential**: Aiming for double-digit operating margins through improved operational efficiency and market recovery [30] AI and Digital Transformation - **AI Integration**: Opportunities in selling to hyperscalers and enhancing internal operations through AI [34][42] - **Focus Areas**: Improving customer interactions and operational efficiency using AI tools [45] Challenges and Opportunities - **Chinese Semiconductor Investments**: Increased capacity in lagging-edge technologies may impact the market, but also presents opportunities for Avnet to manage supply chains effectively [58][60] - **Working Capital Management**: Current inventory levels are higher than desired, but the company is positioned to manage cash flow effectively during growth periods [66] Financial Outlook - **Earnings Guidance**: December quarter shows a 2% growth with a 12% increase in EPS, indicating a return to growth in key regions [70] - **2026 Outlook**: Positive sentiment about market positioning and operational leverage as the company prepares for potential growth [72]

PHOENIX--(BUSINESS WIRE)-- #Avnet--Avnet declares regular quarterly dividend. ...

Core Viewpoint - Avnet (AVT) is currently rated as a Zacks Rank 5 (Strong Sell) despite having recently surpassed the Zacks Consensus Estimate for earnings [1] Company Overview - Avnet, Inc. specializes in the distribution and sale of electronic components, operating through two segments: Electronic Components and Farnell [2] - The Electronic Components segment focuses on marketing and selling semiconductors, interconnects, passive and electromechanical devices, and integrated components [2] - The Farnell segment is dedicated to distributing electronic components and related products to the electronic system design community through multi-channel sales and marketing resources [2] - Founded in 1921 by Charles Avnet, the company is headquartered in Phoenix, AZ [2] Earnings History - Avnet has beaten the Zacks Consensus Estimate in three of the last four quarters, indicating some level of management effectiveness in meeting market expectations [4] - The most recent quarter reported an EPS of $0.84, exceeding the consensus estimate of $0.81 [4] Earnings Estimates - Recent trends show a decline in annual earnings estimates for Avnet, with the current fiscal year consensus dropping from $4.61 to $4.36 over the last 90 days [5] - The next fiscal year's estimate has also decreased from $6.68 to $6.50 in the same timeframe [5] - The negative movement in earnings estimates is a significant factor contributing to Avnet's Zacks Rank of 5 (Strong Sell) [5] Market Context - A broader trend within the Zacks universe indicates that many stocks are experiencing negative earnings estimate revisions, leading to a decline in their rankings [6]

Financial Performance - Sales for the first quarter of fiscal 2026 were $5.90 billion, an increase of $294.4 million, or 5.3%, compared to $5.60 billion in the same quarter last year[91] - Adjusted operating income for the first quarter of fiscal 2026 was $150.7 million, a decrease of $18.3 million, or 10.8%, from $168.9 million in the first quarter of fiscal 2025[101] - The gross profit margin decreased by 42 basis points to 10.4% for the first quarter of fiscal 2026 compared to 10.8% in the first quarter of fiscal 2025[95] - SG&A expenses increased by $25.7 million, or 5.9%, from the first quarter of fiscal 2025, representing 7.9% of sales[97] - Operating income for the first quarter of fiscal 2026 was $142.0 million, a decrease of $0.2 million, or 0.1%, year over year[101] - The effective tax rate for the first quarter of fiscal 2026 was 32.6%, compared to 21.1% in the first quarter of fiscal 2025[105] - The Company's net income for Q1 fiscal 2026 was $51.7 million, or $0.61 per share, down from $59.0 million, or $0.66 per share in Q1 fiscal 2025, reflecting a 5.5% reduction in diluted shares outstanding due to share repurchases[106] Sales and Revenue - EC sales for the first quarter of fiscal 2026 were $5.50 billion, an increase of $242.6 million, or 4.6%, from the prior year[92] - Farnell sales for the first quarter of fiscal 2026 were $398.9 million, reflecting an increase of $51.8 million, or 14.9%, compared to the same period in the prior year[93] - The Company expects sales in the second quarter of fiscal 2026 to increase approximately 2% compared to first quarter sales of fiscal 2026[86] Cash Flow and Operating Activities - Net cash used for operating activities increased by $250.9 million year-over-year to $144.6 million in Q1 fiscal 2026, primarily due to cash used for working capital, which was $217.5 million compared to $0.8 million generated in Q1 fiscal 2025[108] - The Company generated $473.6 million in cash flows from operating activities over the trailing four fiscal quarters ended September 27, 2025[116] Debt and Financing - The Company reported net proceeds of debt totaling $320.8 million in Q1 fiscal 2026, including $633.8 million from Convertible Notes issuance, compared to $15.7 million in the same period of the prior fiscal year[109] - As of September 27, 2025, the Company had a total borrowing capacity of $2.0 billion under the Credit Facility and Securitization Program, with approximately $1.68 billion of total committed availability[119] - Approximately 77% of the Company's debt bears interest at a fixed rate, and a hypothetical 1.0% increase in interest rates would result in a $1.7 million decrease in income before income taxes for Q1 fiscal 2026[128] Shareholder Returns - Cash dividends paid during Q1 fiscal 2026 were $0.35 per share, totaling $28.5 million, slightly down from $0.33 per share, or $28.9 million in Q1 fiscal 2025[123] - The Company repurchased $138.3 million of common stock in Q1 fiscal 2026, compared to $100.0 million in the same period of the prior fiscal year[109] - The Company does not expect to repurchase additional shares until its consolidated leverage ratio returns to historical levels, with $225.8 million of share repurchase capacity remaining[122] Interest and Expenses - Interest and other financing expenses in the first quarter of fiscal 2026 were $59.8 million, a decrease of $4.7 million compared to $64.4 million in the first quarter of fiscal 2025[103] - The Company held cash and cash equivalents of $175.5 million as of September 27, 2025, down from $192.4 million as of June 28, 2025[115]

Core Insights - Avnet, Inc. reported better-than-expected first-quarter results for fiscal 2026, with earnings of 84 cents per share, exceeding the Zacks Consensus Estimate by 3.7%, although this represented an 8.7% decline year-over-year [1][9] - Net sales increased by 5.3% year-over-year to $5.9 billion, surpassing the consensus mark by 3.5%, driven by strong performance across operating segments [1][9] Financial Performance - The Electronic Components segment's revenues rose 4.6% year-over-year and 5.1% sequentially to $5.5 billion, exceeding estimates of $5.34 billion [3] - Farnell sales surged 14.9% year-over-year and 3.2% sequentially to $398.9 million, outperforming the estimate of $360.4 million [3] - Adjusted operating income was $150.7 million, down 10.8% year-over-year, with the Electronic Components segment's income declining 19.5% to $159 million, while Farnell's income increased ninefold to $17.1 million [4] Regional Sales Performance - Year-over-year sales increased 9.9% in Asia to $2.86 billion and 3% in the Americas to $1.37 billion, while EMEA sales slightly declined by 0.1% to $1.67 billion [4] Operating Margins - Avnet's adjusted operating margin decreased by 46 basis points to 2.6% from the previous year, with the Electronic Components segment's margin contracting by 86 basis points to 2.9%, while Farnell's margin improved by 375 basis points to 4.3% [5] Balance Sheet and Cash Flow - As of September 27, 2025, Avnet had cash and cash equivalents of $175.5 million, down from $192.4 million as of June 28, 2025, with long-term debt at $2.79 billion [6] - The company utilized $144.6 million in cash for operational activities during the quarter and repurchased approximately $138.3 million in shares while paying $28.5 million in dividends [6] Q2 Guidance - For the second quarter of fiscal 2026, Avnet expects revenues between $5.85 billion and $6.15 billion, with a midpoint of $6 billion, indicating a year-over-year increase of 1.8% [7] - Non-GAAP earnings are anticipated to be between 90 cents and $1 per share, while the consensus estimate is $1.01, suggesting a year-over-year increase of 16.1% [7]

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Core Insights - Amplifon, the Italian hearing aid group, experienced a significant decline in its third-quarter adjusted net profit, reporting a 27.7% drop to 19.2 million euros ($22.4 million) [1] Financial Performance - The adjusted net profit for the third quarter was 19.2 million euros, which translates to approximately $22.4 million [1] - The reported decline of 27.7% indicates a substantial decrease in profitability compared to the previous year [1]