Financial Performance - For Q3 2024, Avnet reported sales of $5.65 billion, a decrease of $861 million or 13.2% compared to $6.51 billion in Q3 2023[87]. - Adjusted operating income for Q3 2024 was $202.7 million, down from $314.5 million in Q3 2023, reflecting a decline of 35.5%[82]. - Gross profit for Q3 2024 was $669 million, a decrease of $143 million or 17.6% year-over-year[89]. - The gross profit margin decreased by 62 basis points to 11.8% in Q3 2024 compared to 12.5% in Q3 2023[90]. - Operating income for Q3 fiscal 2024 was $190.2 million, a decrease of $123.5 million or 39.4% year over year, with an operating income margin of 3.4%[97]. - Year-to-date operating income for the first nine months of fiscal 2024 was $680.2 million, down $223.0 million or 24.7% from the same period in fiscal 2023[97]. - Net income for Q3 fiscal 2024 was $88.8 million, or $0.97 per share, compared to $187.4 million, or $2.03 per share, in Q3 fiscal 2023[104]. Sales and Market Trends - For the first nine months of fiscal 2024, sales were $18.19 billion, a decrease of $1.79 billion or 9.0% compared to $19.98 billion in the same period of fiscal 2023[87]. - EC sales in Q3 2024 were $5.25 billion, down $813.9 million or 13.4% from Q3 2023, driven by market downturns[88]. - Farnell sales for Q3 2024 were $407.8 million, reflecting a decrease of $47.2 million or 10.4% year-over-year[88]. Expenses and Costs - SG&A expenses decreased by $30.9 million or 6.2% in Q3 2024 compared to Q3 2023, but as a percentage of sales, they increased to 8.3% from 7.6%[91][92]. - Restructuring, integration, and other expenses in Q3 2024 totaled $11.8 million, with an after-tax impact of $9.1 million or $0.10 per diluted share[94]. - Interest and other financing expenses in Q3 fiscal 2024 were $73.5 million, an increase of $1.8 million compared to Q3 fiscal 2023, and $218.6 million for the first nine months, up $42.8 million year over year[99]. - The Company had other expenses of $14.7 million in Q3 fiscal 2024, compared to other income of $1.7 million in Q3 fiscal 2023, primarily due to foreign currency translation losses[101]. Cash Flow and Debt - Net cash provided by operating activities was $499 million for Q3 fiscal 2024, and $415.7 million for the first nine months, a significant increase from a net cash used of $948.2 million in the same period last year[105]. - The Company repaid $106.3 million in debt during the first nine months of fiscal 2024, contrasting with $1.43 billion of net borrowing in the same period of the prior year[106]. - Cash and cash equivalents as of March 30, 2024, were $218.5 million, down from $288.2 million as of July 1, 2023[111]. Future Outlook - The company expects Q4 2024 sales to be 3% to 8% lower than Q3 2024 sales, which will negatively impact operating income and diluted earnings per share[84]. Taxation - The effective tax rate for Q3 fiscal 2024 was 12.9%, down from 23.1% in Q3 fiscal 2023, primarily due to a mix of income in lower tax foreign jurisdictions[103]. Legal and Other Gains - The Company recorded a gain on legal settlements of $86.5 million in the first nine months of fiscal 2024, compared to $61.7 million in the same period of fiscal 2023[102].

Avnet (AVT) reported lower-than-expected third-quarter fiscal 2024 results. The company’s non-GAAP earnings were $1.10 per share, which came a penny lower than the Zacks Consensus Estimate of $1.11. Moreover, the reported figure came 45% lower than the year-ago quarter’s non-GAAP earnings of $2 per share, mainly due to lower revenues.Revenues declined 13% year over year to $5.65 billion and came slightly lower than the Zacks Consensus Estimate of $5.70 billion. The company’s top-line performance reflects a ...

Financial Data and Key Metrics Changes - The company achieved sales of $5.7 billion in Q3 2024, down 13% year-over-year and down 9% sequentially in constant currency [15][5] - Adjusted operating margin was 3.6%, with Electronic Components business showing a 4.1% operating margin [5][17] - Generated nearly $500 million in cash flow from operations, with a total of $650 million over the past four quarters [22][5] Business Line Data and Key Metrics Changes - Electronic Components sales declined 13% year-over-year and 10% quarter-over-quarter in constant currency [16] - Farnell sales declined 10% year-over-year but grew 3% sequentially in constant currency [16][12] - Gross margin for the third quarter was 11.8%, down 62 basis points year-over-year but up 46 basis points sequentially [16] Market Data and Key Metrics Changes - Demand declined across most end markets, with defense and data center markets showing improvement [7] - Transportation end market saw increasing demand globally, particularly in Asia and the Americas [10][7] - The global book-to-bill ratio remained below parity, though modestly improved, particularly in Asia [8] Company Strategy and Development Direction - The company is focused on reducing working capital, especially inventory, and aligning costs to drive shareholder return [14] - Continued investment in verticals such as transportation and defense/aerospace, which are expected to grow [48][47] - The company is leveraging its position in the technology supply chain to pursue opportunities with long-standing customers and suppliers [9] Management's Comments on Operating Environment and Future Outlook - Management noted that current economic conditions are challenging, but there are signs of potential recovery, particularly in Asia [13][26] - The company expects to see some sequential growth as it moves through the balance of calendar 2024 [13] - Management remains cautious but optimistic about the future, indicating a focus on maintaining operational efficiency and cash flow generation [14][24] Other Important Information - A leadership change was announced in the Farnell business, with Chris Breslin leaving the company [11] - Cost reduction actions are being implemented at Farnell, expected to yield annual savings of $50 million to $70 million [18] - The company plans to repurchase shares in the fourth quarter, as shares are trading below book value [23][44] Q&A Session Summary Question: Forecast for below seasonal sales in all regions and potential inventory drawdown - Management believes they have hit bottom in Asia, with moderate forecasting for 2024, while Europe is facing tough comparisons due to previous record highs [26] Question: Timing of cost-cutting measures and expected OpEx changes - Cost actions are occurring now, with expectations for a slight decrease in OpEx next quarter due to volume decline and Farnell actions [28] Question: Order trends in the first month of the current quarter - Book-to-bill ratios have improved modestly, particularly in Asia, with some recovery noted in Farnell and IP&E [37] Question: Dynamics in the automotive market and order trends - The automotive market is mixed, with some segments showing growth, particularly in transportation, but overall demand varies by region [39] Question: Revenue levels needed to maintain operating margin above 4% - The operating margin is expected to be around 4%, depending on regional mix and demand [42] Question: Cash conversion cycle and free cash flow outlook - Positive free cash flow is expected, with share buybacks planned for the fourth quarter, but no significant M&A activity anticipated [44]

Financial Performance - Q3 sales of $5.7 billion, a 13.2% decrease year-over-year (YoY) from $6.5 billion in the prior year quarter[1][3][5] - Diluted EPS of $0.97, down 52.2% YoY from $2.03, with adjusted diluted EPS of $1.10, down 45.0% YoY from $2.00[1][3][5] - Operating income margin of 3.4%, down 145 basis points (bps) YoY from 4.8%, with adjusted operating income margin of 3.6%, down 124 bps YoY[3][5] - Electronic Components operating income margin of 4.1%, down 91 bps YoY from 5.0%[3][5] - Net income for the nine months ended March 30, 2024, was $416,033 thousand, compared to $615,572 thousand for the same period in 2023[17] - Adjusted operating income for the year to date 2024 was $706,610 thousand, compared to GAAP operating income of $680,177 thousand[23] - Adjusted net income for the year to date 2024 was $378,421 thousand, compared to GAAP net income of $416,033 thousand[23] - Adjusted diluted earnings per share for the year to date 2024 was $4.11, compared to GAAP diluted earnings per share of $4.52[23] - GAAP operating income for fiscal year 2023 was $1,186.8 million, with adjusted operating income at $1,220.9 million[24] - Adjusted net income for fiscal year 2023 was $752.8 million, with GAAP net income at $770.8 million[24] - Avnet's sales for the first nine months of fiscal 2024 were $18,194.2 million, with operating income at $680.2 million[27] - Avnet's sales for fiscal year 2023 were $26,536.9 million, with operating income of $1,186.8 million[28] Regional Sales Performance - Americas sales of $1.40 billion, down 18.2% YoY, EMEA sales of $2.05 billion, down 14.2% YoY, and Asia sales of $2.20 billion, down 8.7% YoY[6] - Sales in constant currency for the third quarter of fiscal 2024 showed a year-year decline of 13.2% for Avnet, with regional declines of 18.2% in the Americas, 14.2% in EMEA, and 8.7% in Asia[26] - Sales by geographic area for the first nine months of fiscal 2024 were $4,565.4 million in the Americas, $6,474.7 million in EMEA, and $7,154.1 million in Asia[27] Segment Performance - Farnell sales of $407.8 million, down 10.4% YoY, with an operating income margin of 4.0%, down 499 bps YoY[5] - Electronic Components segment sales for the first nine months of fiscal 2024 were $16,972.3 million, with operating income of $737.5 million[27] - Farnell segment sales for the first nine months of fiscal 2024 were $1,221.9 million, with operating income of $49.7 million[27] - Electronic Components segment sales for fiscal year 2023 were $24,802.6 million, with operating income of $1,179.6 million[28] - Farnell segment sales for fiscal year 2023 were $1,734.3 million, with operating income of $165.5 million[28] Cash Flow and Shareholder Returns - Generated $500 million in cash flow from operations, with trailing twelve-month cash flows from operations of $650 million[3] - Returned $28 million to shareholders in dividends during the quarter[3] - Net cash flows provided by operating activities for the nine months ended March 30, 2024, were $415,730 thousand, compared to a net cash outflow of $948,241 thousand for the same period in 2023[17] - The company repurchased $86,027 thousand of common stock during the nine months ended March 30, 2024, compared to $221,282 thousand for the same period in 2023[17] - The company paid $84,154 thousand in dividends on common stock during the nine months ended March 30, 2024, compared to $79,807 thousand for the same period in 2023[17] Guidance and Forecast - Q4 sales guidance range of $5.20 billion to $5.50 billion, with a midpoint of $5.35 billion, implying a sequential decline of 3% to 8%[7][8] - Q4 diluted EPS guidance range of $0.90 to $1.00, with a midpoint of $0.95[7] - Adjusted diluted earnings per share guidance ranges from $0.90 to $1.00[30] - GAAP diluted earnings per share guidance ranges from $0.80 to $0.85[30] - Restructuring, integration, and other expenses (net of tax) are estimated between $(0.10) and $(0.15)[30] Non-GAAP Financial Measures - The company uses non-GAAP financial measures such as adjusted operating income, adjusted net income, and adjusted diluted EPS to provide a more comparable basis for evaluating performance and forecasting future results[18][20][21] Currency Impact - Foreign currency exchange rate fluctuations had a significant impact on the company's reported results, with a stronger U.S. Dollar decreasing reported results and a weaker U.S. Dollar increasing reported results[19] Cash and Cash Equivalents - The company's cash and cash equivalents decreased by $69,757 thousand to $218,473 thousand at the end of March 30, 2024, compared to $288,230 thousand at the beginning of the period[17]

Electronics companies are expected to benefit from a recovery in demand across several key end markets. The rapid deployment of 5G technology worldwide is likely to have stood out as a major catalyst for these companies in the to-be-reported quarter. With the expansion of 5G networks, there's a heightened demand for telecommunications equipment and infrastructure, which is likely to boost the earnings of firms operating in this industry.Simultaneously, the increasing adoption of Internet of Things (IoT) tec ...

It has been about a month since the last earnings report for Avnet (AVT) . Shares have added about 2.7% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Avnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Avnet's Q2 Earnings and Revenues Surpass EstimatesAvnet ...

PHOENIX--(BUSINESS WIRE)--Avnet (Nasdaq: AVT), a leading global technology solutions provider, today announced it will participate in the upcoming 45th Annual Raymond James Institutional Investors Conference on March 4, 2024. Avnet’s Chief Financial Officer Ken Jacobson and Vice President, Treasury & Investor Relations Joe Burke will participate in a fireside chat at 11:00 a.m. ET. The live and archived webcast of the presentation can be accessed via Avnet’s Investor Relations web page at https://ir.avnet. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------|-------------------------------------------|------------------- ...

Avnet (AVT) reported better-than-expected second-quarter fiscal 2024 results. The company’s non-GAAP earnings were $1.40 per share, which surpassed the Zacks Consensus Estimate of $1.39. However, the reported figure came 30% lower than the year-ago quarter’s non-GAAP earnings of $2 per share, mainly due to lower revenues and the negative impact of 12 cents from higher interest expenses.Revenues declined 7.6% year over year to $6.20 billion but slightly came ahead of the Zacks Consensus Estimate of $6.15 bil ...

Avnet Inc. (NASDAQ:AVT) Q2 2024 Earnings Call Transcript January 31, 2024 11:00 AM ET Company Participants Joe Burke - Vice President of Treasury & Investor Relations Phil Gallagher - CEO, Member of Executive Board & Director Ken Jacobson - Chief Financial Officer Conference Call Participants William Stein - Truth Securities Ruplu Bhattacharya - Bank of America Joe Quatrochi - Wells Fargo Matt Sheerin - Stifel Toshiya Hari - Goldman Sachs Operator Welcome to the Avnet Second Quarter Fiscal Year 2024 Earning ...