Have you evaluated the performance of Avnet's (AVT) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this distributor of electronic components, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial he ...

Avnet (AVT) shares gained nearly 7% on Thursday after the company reported better-than-expected fourth-quarter fiscal 2024 results. Its non-GAAP earnings were $1.22 per share, which came way above the Zacks Consensus Estimate of 95 cents as well as management’s guidance range of 90 cents-$1.00.However, the reported figure came 41% lower than the year-ago quarter’s non-GAAP earnings of $2.06 per share, mainly due to lower revenues.Revenues declined 15% year over year to $5.56 billion but came above the Zacks ...

Avnet, Inc. (NASDAQ:AVT) Q4 2024 Earnings Conference Call August 8, 2024 12:00 PM ET Company Participants Joe Burke - Vice President, Treasurer & Investor Relations Phil Gallagher - Chief Executive Officer Ken Jacobson - Chief Financial Officer Conference Call Participants William Stein - Truist Securities Matt Sheerin - Stifel Melissa Fairbanks - Raymond James Joe Quatrochi - Wells Fargo Ruplu Bhattacharya - Bank of America Operator Welcome to the Avnet Fourth Quarter Fiscal Year 2024 Earnings Call. I woul ...

For the quarter ended June 2024, Avnet (AVT) reported revenue of $5.56 billion, down 15.1% over the same period last year. EPS came in at $1.22, compared to $2.06 in the year-ago quarter.The reported revenue represents a surprise of +3.75% over the Zacks Consensus Estimate of $5.36 billion. With the consensus EPS estimate being $0.95, the EPS surprise was +28.42%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

Avnet (AVT) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $2.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.42%. A quarter ago, it was expected that this distributor of electronic components would post earnings of $1.11 per share when it actually produced earnings of $1.10, delivering a surprise of -0.90%.Over the last four quar ...

[Executive Summary and Key Highlights](index=1&type=section&id=Executive%20Summary%20and%20Key%20Highlights) Summarizes Avnet's fiscal Q4 and full year 2024 financial performance, key metrics, and CEO commentary [Fiscal Fourth Quarter 2024 Highlights](index=1&type=section&id=Fiscal%20Fourth%20Quarter%202024%20Highlights) Avnet's Q4 FY24 sales decreased to **$5.6 billion**, with diluted EPS **$0.91** and adjusted EPS **$1.22**, generating **$274 million** operating cash flow - Fourth quarter sales were **$5.6 billion**, a **15.1% decrease** from **$6.6 billion** in the prior year quarter[3](index=3&type=chunk) - Diluted EPS was **$0.91** (vs. **$1.68** prior year) and adjusted diluted EPS was **$1.22** (vs. **$2.06** prior year)[3](index=3&type=chunk) - Operating income margin was **3.0%** (adjusted **3.5%**), down from **4.3%** in the prior year quarter[3](index=3&type=chunk) - Generated **$274 million** in cash flow from operations[3](index=3&type=chunk) - Returned **$107 million** to shareholders, comprising **$79 million** in share repurchases (**1.6%** of shares outstanding) and **$28 million** in dividends[3](index=3&type=chunk) [Fiscal Year 2024 Highlights](index=1&type=section&id=Fiscal%20Year%202024%20Highlights) Avnet's FY24 sales were **$23.8 billion**, diluted EPS **$5.43**, adjusted EPS **$5.34**, and **$690 million** operating cash flow - Sales were **$23.8 billion**, a **10.5% decrease** from **$26.5 billion** in the prior year[2](index=2&type=chunk) - Diluted earnings per share (EPS) of **$5.43**, compared with **$8.26** in the prior year, and adjusted diluted EPS of **$5.34**, compared with **$8.06** in the prior year[2](index=2&type=chunk) - Operating income margin of **3.6%** (adjusted **3.8%**), compared with **4.5%** in the prior year[2](index=2&type=chunk) - Electronic Components operating income margin was **4.3%** and Farnell operating income margin was **4.1%**[2](index=2&type=chunk) - Generated **$690 million** of cash flow from operations[4](index=4&type=chunk) - Returned **$277 million** to shareholders, including **$165 million** from share repurchases (**3.6%** of shares outstanding) and **$112 million** in dividends[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Phil Gallagher highlighted strong FY24 execution despite market challenges, exceeding Q4 guidance, and expressed confidence for FY25 - Avnet is satisfied with its fiscal 2024 performance, demonstrating strong execution despite challenging market conditions[1](index=1&type=chunk) - The team prioritized supporting partners, growing market share, controlling costs, and managing working capital to enhance operating cash flow[1](index=1&type=chunk) - Exceeded the upper range of fourth-quarter sales and earnings guidance[1](index=1&type=chunk) - Avnet is well-positioned for fiscal year 2025 with a robust team and strategy to capitalize on an eventual market recovery[1](index=1&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) Details Avnet's GAAP and non-GAAP financial results, covering segment and geographical performance [Fourth Quarter 2024 Financial Results (GAAP & Non-GAAP)](index=2&type=section&id=Fourth%20Quarter%202024%20Financial%20Results%20(GAAP%20%26%20Non-GAAP)) Avnet's Q4 FY24 GAAP sales decreased **15.1%** to **$5.56 billion**, diluted EPS **$0.91**; adjusted non-GAAP operating income **$193.4 million**, EPS **$1.22** Fourth Quarter Results (GAAP) | Metric | Jun – 24 | Jun – 23 | Change Y/Y | Mar – 24 | Change Q/Q | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Sales | $5,563.0 | $6,554.6 | (15.1)% | $5,653.6 | (1.6)% | | Operating Income | $164.2 | $283.7 | (42.1)% | $190.2 | (13.7)% | | Operating Income Margin | 3.0% | 4.3% | (138)bps | 3.4% | (41)bps | | Diluted EPS | $0.91 | $1.68 | (45.8)% | $0.97 | (6.2)% | Fourth Quarter Results (Non-GAAP) | Metric | Jun – 24 | Jun – 23 | Change Y/Y | Mar – 24 | Change Q/Q | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Adjusted Operating Income | $193.4 | $312.6 | (38.1)% | $202.7 | (4.6)% | | Adjusted Operating Income Margin | 3.5% | 4.8% | (129)bps | 3.6% | (11)bps | | Adjusted Diluted EPS | $1.22 | $2.06 | (40.8)% | $1.10 | 10.9% | [Fiscal Year 2024 GAAP Financial Results](index=5&type=section&id=Fiscal%20Year%202024%20GAAP%20Financial%20Results) Avnet's FY24 GAAP sales were **$23.76 billion** (down from FY23), operating income **$844.4 million**, and diluted EPS **$5.43** Fiscal Year 2024 GAAP Financial Results | Metric | FY 2024 | FY 2023 | | :------------------------------------------ | :----------- | :----------- | | Sales | $23,757,129 | $26,536,881 | | Cost of sales | 20,990,687 | 23,354,738 | | Gross profit | 2,766,442 | 3,182,143 | | Operating income | 844,367 | 1,186,800 | | Income before taxes | 632,263 | 982,876 | | Net income | $498,699 | $770,828 | | Diluted EPS | $5.43 | $8.26 | [Segment and Geographical Performance (Q4 & FY24)](index=2&type=section&id=Segment%20and%20Geographical%20Performance%20(Q4%20%26%20FY24)) Q4 FY24: EC sales declined **15.1%** to **$5.19 billion**, Farnell sales **15.8%** to **$375.2 million**, Americas and EMEA saw significant declines Q4 FY24 Sales by Segment | Segment | Jun – 24 | Jun – 23 | Change Y/Y | Mar – 24 | Change Q/Q | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Electronic Components (EC) Sales | $5,187.8 | $6,109.2 | (15.1)% | $5,245.8 | (1.1)% | | Farnell Sales | $375.2 | $445.4 | (15.8)% | $407.8 | (8.0)% | Q4 FY24 Operating Income Margin by Segment | Segment | Jun – 24 | Jun – 23 | Change Y/Y | Mar – 24 | Change Q/Q | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | EC Operating Income Margin | 4.1% | 5.1% | (103)bps | 4.1% | (8)bps | | Farnell Operating Income Margin | 4.0% | 8.1% | (406)bps | 4.0% | 3 bps | Q4 FY24 Sales by Geographic Area | Region | Jun – 24 | Jun – 23 | Change Y/Y | Mar – 24 | Change Q/Q | | :-------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Americas Sales | $1,353.8 | $1,732.7 | (21.9)% | $1,403.4 | (3.5)% | | EMEA Sales | $1,920.3 | $2,450.6 | (21.6)% | $2,053.1 | (6.5)% | | Asia Sales | $2,288.9 | $2,371.3 | (3.5)% | $2,197.1 | 4.2% | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Outlines Avnet's financial projections for Q1 FY25, including sales and diluted EPS guidance [First Quarter Fiscal 2025 Guidance](index=3&type=section&id=First%20Quarter%20Fiscal%202025%20Guidance) Avnet projects Q1 FY25 sales between **$5.25 billion** and **$5.55 billion**, diluted EPS **$0.80** to **$0.90**, anticipating regional sales shifts Q1 Fiscal 2025 Guidance | Metric | Guidance Range | Midpoint | | :-------------------------- | :--------------- | :------- | | Sales | $5.25B – $5.55B | $5.40B | | Diluted EPS | $0.80 – $0.90 | $0.85 | - Guidance implies sequential sales change of flat to down approximately **5%**, with anticipated declines in western regions and growth in Asia[6](index=6&type=chunk) - Guidance assumes interest expense similar to Q4 FY24 and an effective tax rate between **21%** and **25%**[6](index=6&type=chunk) Q1 Fiscal 2025 Average Currency Exchange Rates | Currency | Q1 Fiscal 2025 Guidance | Q4 Fiscal 2024 | Q1 Fiscal 2024 | | :-------------------------- | :---------------------- | :------------- | :------------- | | Euro to U.S. Dollar | $1.08 | $1.08 | $1.09 | | GBP to U.S. Dollar | $1.27 | $1.27 | $1.27 | [Company Information](index=3&type=section&id=Company%20Information) Provides an overview of Avnet, conference call details, and forward-looking statement disclosures [About Avnet](index=4&type=section&id=About%20Avnet) Avnet is a global technology distributor and solutions provider with over a century of experience, accelerating product lifecycle stages - Avnet is a leading global technology distributor and solutions provider, serving customers for over a century[12](index=12&type=chunk) - Supports customers across the entire product lifecycle, from initial concept to design, prototype, and production[12](index=12&type=chunk) - Its unique position in the technology value chain accelerates design and supply, enabling faster revenue realization for customers[12](index=12&type=chunk) [Conference Call and Webcast Details](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Details) Avnet held a conference call and webcast on **August 8, 2024**, to discuss financial results, with replay and webcast details - Avnet hosted a conference call and webcast on **August 8, 2024**, at **9:00 a.m. PT / Noon ET**[9](index=9&type=chunk) - Live conference call details: **877-407-8112** (domestic) or **201-689-8840** (international)[9](index=9&type=chunk) - Conference call replay was available through **August 15, 2024**, using Conference ID: **13747493**[9](index=9&type=chunk) - Live and archived webcast is accessible via Avnet's Investor Relations web page at: https://ir.avnet.com[9](index=9&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements subject to various risks and uncertainties, with no obligation to update - This document contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934[10](index=10&type=chunk) - These statements are subject to numerous assumptions, risks, and uncertainties that could cause future results to differ materially[10](index=10&type=chunk) - Key risk factors include geopolitical events, competitive pressures, semiconductor industry down-cycles, supplier relationships, international operational risks, acquisitions, supply chain disruptions, cybersecurity, economic conditions, and regulatory changes[10](index=10&type=chunk) - The Company assumes no obligation to update any forward-looking statement to reflect subsequent events or circumstances, except as legally required[11](index=11&type=chunk) [Consolidated GAAP Financial Statements](index=5&type=section&id=Consolidated%20GAAP%20Financial%20Statements) Presents Avnet's consolidated GAAP financial statements: operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Avnet's GAAP statements show declines in Q4 and FY24 sales, gross profit, operating income, and net income; FY24 sales **$23.76 billion** Consolidated Statements of Operations (GAAP) | Metric | Q4 FY24 | Q4 FY23 | FY24 | FY23 | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Sales | $5,562,977 | $6,554,608 | $23,757,129 | $26,536,881 | | Cost of sales | 4,920,097 | 5,736,586 | 20,990,687 | 23,354,738 | | Gross profit | 642,880 | 818,022 | 2,766,442 | 3,182,143 | | Selling, general and administrative expenses | 450,274 | 506,322 | 1,869,525 | 1,967,305 | | Restructuring, integration, and other expenses | 28,417 | 28,038 | 52,550 | 28,038 | | Operating income | 164,189 | 283,662 | 844,367 | 1,186,800 | | Income before taxes | 101,324 | 190,393 | 632,263 | 982,876 | | Income tax expense | 18,659 | 35,138 | 133,564 | 212,048 | | Net income | $82,665 | $155,255 | $498,699 | $770,828 | | Diluted EPS | $0.91 | $1.68 | $5.43 | $8.26 | Cash Dividends Paid Per Common Share | Period | Q4 FY24 | Q4 FY23 | FY24 | FY23 | | :-------------------------- | :------ | :------ | :----- | :----- | | Cash dividends paid per common share | $0.31 | $0.29 | $1.24 | $1.16 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2024, Avnet's total assets were **$12.21 billion**, liabilities **$7.28 billion**, shareholders' equity **$4.93 billion**, with increased short-term debt Condensed Consolidated Balance Sheets (GAAP) | Asset/Liability/Equity | June 29, 2024 | July 1, 2023 | | :----------------------------------- | :------------ | :----------- | | **ASSETS** | | | | Cash and cash equivalents | $310,941 | $288,230 | | Receivables | 4,391,187 | 4,763,788 | | Inventories | 5,468,730 | 5,465,031 | | Total current assets | 10,370,552 | 10,750,853 | | Property, plant and equipment, net | 568,169 | 441,557 | | Goodwill | 780,984 | 780,629 | | Total assets | $12,209,147 | $12,477,159 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Short-term debt | $492,711 | $70,636 | | Accounts payable | 3,345,510 | 3,373,820 | | Total current liabilities | 4,465,269 | 4,249,378 | | Long-term debt | 2,406,629 | 2,988,029 | | Total liabilities | 7,283,643 | 7,725,490 | | Shareholders' equity | 4,925,504 | 4,751,669 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Avnet generated **$689.98 million** in FY24 operating cash flow, a significant improvement from FY23, ending with **$310.94 million** cash Consolidated Statements of Cash Flows (GAAP) | Cash Flow Activity | FY 2024 | FY 2023 | | :--------------------------------------------------- | :---------- | :---------- | | Net income | $498,699 | $770,828 | | Net cash flows provided by (used for) operating activities | 689,984 | (713,703) | | Net cash flows (used for) provided by financing activities | (433,799) | 1,054,756 | | Net cash flows used for investing activities | (225,484) | (211,551) | | Effect of currency exchange rate changes on cash and cash equivalents | (7,990) | 5,035 | | Cash and cash equivalents at end of period | $310,941 | $288,230 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Explains Avnet's non-GAAP financial measures and provides detailed GAAP reconciliations for FY24-FY23 [Explanation of Non-GAAP Financial Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Avnet uses non-GAAP measures like adjusted operating income and diluted EPS to clarify underlying performance by excluding specific non-recurring or non-cash items - Avnet discloses non-GAAP financial information including adjusted operating income, adjusted other income (expense), adjusted income before income taxes, adjusted income tax expense (benefit), and adjusted diluted earnings per share[20](index=20&type=chunk) - Sales in 'constant currency' are used to evaluate performance and understand underlying trends by adjusting for foreign currency exchange rate changes[21](index=21&type=chunk) - Adjusted operating income excludes restructuring, integration, other expenses, and amortization of acquired intangible assets, deemed outside normal operations or non-cash[22](index=22&type=chunk) - Adjusted net income and diluted EPS offer a more comparable measure of profitability by excluding specific items such as legal settlements, foreign currency gains/losses, and certain tax adjustments[23](index=23&type=chunk) - Non-GAAP analysis should complement and be used in conjunction with GAAP results[24](index=24&type=chunk) [Non-GAAP Reconciliations for Fiscal Year 2024 and Quarters](index=9&type=section&id=Non-GAAP%20Reconciliations%20for%20Fiscal%20Year%202024%20and%20Quarters) Details GAAP to non-GAAP reconciliations for FY24 and its quarters, adjusting for restructuring and amortization; FY24 GAAP diluted EPS **$5.43** adjusted to **$5.34** Non-GAAP Reconciliations (Fiscal Year 2024 and Quarters) | Metric | Fiscal Year 2024 | Q4 FY24 | Q3 FY24 | Q2 FY24 | Q1 FY24 | | :--------------------------------------------------- | :--------------- | :-------- | :-------- | :-------- | :-------- | | GAAP operating income | $844,367 | $164,189 | $190,151 | $236,257 | $253,769 | | Adjusted operating income | 900,047 | 193,434 | 202,710 | 242,204 | 261,698 | | GAAP income before income taxes | $632,263 | $101,324 | $101,948 | $153,558 | $275,432 | | Adjusted income before income taxes | 629,174 | 131,249 | 132,357 | 168,705 | 196,862 | | GAAP net income | $498,699 | $82,665 | $88,834 | $117,931 | $209,268 | | Adjusted net income | 489,979 | 111,555 | 100,592 | 128,215 | 149,616 | | GAAP diluted earnings per share | $5.43 | $0.91 | $0.97 | $1.28 | $2.25 | | Adjusted diluted EPS | 5.34 | 1.22 | 1.10 | 1.40 | 1.61 | [Non-GAAP Reconciliations for Fiscal Year 2023 and Quarters](index=11&type=section&id=Non-GAAP%20Reconciliations%20for%20Fiscal%20Year%202023%20and%20Quarters) Provides detailed GAAP to non-GAAP reconciliations for FY23 and its quarters; GAAP diluted EPS **$8.26** adjusted to **$8.06** Non-GAAP Reconciliations (Fiscal Year 2023 and Quarters) | Metric | Fiscal Year 2023 | Q4 FY23 | Q3 FY23 | Q2 FY23 | Q1 FY23 | | :--------------------------------------------------- | :--------------- | :-------- | :-------- | :-------- | :-------- | | GAAP operating income | $1,186,800 | $283,662 | $313,629 | $298,973 | $290,537 | | Adjusted operating income | 1,220,891 | 312,578 | 314,505 | 300,514 | 293,296 | | GAAP income before income taxes | $982,876 | $190,393 | $243,587 | $303,134 | $245,762 | | Adjusted income before income taxes | 979,931 | 243,978 | 244,463 | 242,970 | 248,521 | | GAAP income tax expense | $212,048 | $35,138 | $56,161 | $59,248 | $61,501 | | Adjusted income tax expense | 227,157 | 52,763 | 59,893 | 57,341 | 57,160 | | GAAP diluted earnings per share | $8.26 | $1.68 | $2.03 | $2.63 | $1.93 | | Adjusted diluted EPS | 8.06 | 2.06 | 2.00 | 2.00 | 2.00 | [Sales in Constant Currency](index=12&type=section&id=Sales%20in%20Constant%20Currency) Foreign currency fluctuations impacted Avnet's reported sales; Q4 FY24 constant currency sales declined **14.2%** YoY, Asia grew **4.8%** QoQ Sales Growth Rates (Reported vs. Constant Currency) | Metric | Q4 FY24 Reported YoY % Change | Q4 FY24 Constant Currency YoY % Change | Q4 FY24 Reported QoQ % Change | Q4 FY24 Constant Currency QoQ % Change | FY24 Reported YoY % Change | FY24 Constant Currency YoY % Change | | :----------------------------------- | :---------------------------- | :------------------------------------- | :---------------------------- | :------------------------------------- | :------------------------- | :------------------------------------ | | Avnet | (15.1)% | (14.2)% | (1.6)% | (1.0)% | (10.5)% | (10.9)% | | Americas | (21.9)% | (21.9)% | (3.5)% | (3.5)% | (13.1)% | (13.1)% | | EMEA | (21.6)% | (20.7)% | (6.5)% | (5.6)% | (9.0)% | (11.4)% | | Asia | (3.5)% | (1.9)% | 4.2% | 4.8% | (10.1)% | (9.0)% | | EC | (15.1)% | (14.1)% | (1.1)% | (0.5)% | (10.7)% | (11.0)% | | Farnell | (15.8)% | (15.4)% | (8.0)% | (7.5)% | (7.9)% | (9.3)% | [Historical Segment Financial Information](index=12&type=section&id=Historical%20Segment%20Financial%20Information) Presents historical sales and operating income data by segment and geographic area for FY24 and FY23, showing consistent FY24 declines Historical Sales by Segment and Geographic Area (FY24 & Quarters) | Metric | FY 2024 | Q4 FY24 | Q3 FY24 | Q2 FY24 | Q1 FY24 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Sales:** | | | | | | | Electronic Components | $22,160.0 | $5,187.8 | $5,245.8 | $5,812.1 | $5,914.4 | | Farnell | 1,597.1 | 375.2 | 407.8 | 392.8 | 421.2 | | Avnet sales | $23,757.1 | $5,563.0 | $5,653.6 | $6,204.9 | $6,335.6 | | **Sales by geographic area:** | | | | | | | Americas | $5,919.2 | $1,353.8 | $1,403.4 | $1,588.5 | $1,573.5 | | EMEA | 8,395.0 | 1,920.3 | 2,053.1 | 2,113.6 | 2,308.0 | | Asia | 9,442.9 | 2,288.9 | 2,197.1 | 2,502.8 | 2,454.1 | Historical Operating Income by Segment (FY24 & Quarters) | Metric | FY 2024 | Q4 FY24 | Q3 FY24 | Q2 FY24 | Q1 FY24 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Operating income:** | | | | | | | Electronic Components | $947.6 | $210.1 | $216.9 | $247.9 | $272.8 | | Farnell | 64.8 | 15.1 | 16.3 | 15.7 | 17.7 | | Avnet operating income | $844.4 | $164.2 | $190.2 | $236.3 | $253.8 | Historical Sales by Segment and Geographic Area (FY23 & Quarters) | Metric | FY 2023 | Q4 FY23 | Q3 FY23 | Q2 FY23 | Q1 FY23 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Sales:** | | | | | | | Electronic Components | $24,802.6 | $6,109.2 | $6,059.6 | $6,309.5 | $6,324.2 | | Farnell | 1,734.3 | 445.4 | 455.0 | 408.0 | 425.9 | | Avnet sales | $26,536.9 | $6,554.6 | $6,514.6 | $6,717.5 | $6,750.1 | | **Sales by geographic area:** | | | | | | | Americas | $6,807.7 | $1,732.7 | $1,714.9 | $1,681.2 | $1,678.9 | | EMEA | 9,229.4 | 2,450.6 | 2,393.4 | 2,255.9 | 2,129.5 | | Asia | 10,499.8 | 2,371.3 | 2,406.3 | 2,780.4 | 2,941.7 | Historical Operating Income by Segment (FY23 & Quarters) | Metric | FY 2023 | Q4 FY23 | Q3 FY23 | Q2 FY23 | Q1 FY23 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **Operating income:** | | | | | | | Electronic Components | $1,179.6 | $310.4 | $305.2 | $296.7 | $267.3 | | Farnell | 165.5 | 36.1 | 40.9 | 36.9 | 51.6 | | Avnet operating income | $1,186.8 | $283.7 | $313.6 | $299.0 | $290.5 | [Guidance Reconciliation](index=13&type=section&id=Guidance%20Reconciliation) Avnet reconciles non-GAAP adjusted diluted EPS guidance to GAAP for Q1 FY25, with GAAP diluted EPS guided between **$0.63** and **$0.82** Q1 Fiscal 2025 Guidance Reconciliation (Non-GAAP to GAAP Diluted EPS) | Metric | Low End of Guidance Range | High End of Guidance Range | | :--------------------------------------------------- | :------------------------ | :------------------------- | | Adjusted diluted earnings per share guidance | $0.80 | $0.90 | | Restructuring, integration, and other expenses (net of tax) | (0.17) | (0.08) | | GAAP diluted earnings per share guidance | $0.63 | $0.82 |

Group 1 - Analysts project Avnet (AVT) will announce quarterly earnings of $0.95 per share, a decline of 53.9% year over year [1] - Revenues are expected to reach $5.36 billion, declining 18.2% from the same quarter last year [1] - There has been a downward revision of 1% in the consensus EPS estimate over the last 30 days, indicating a reconsideration of initial forecasts by covering analysts [1] Group 2 - Analysts estimate 'Sales- Farnell' to reach $368.32 million, reflecting a change of -17.3% from the prior-year quarter [2] - 'Sales- Electronic Components' is expected to come in at $5.08 billion, indicating a change of -16.8% from the prior-year quarter [2] - The consensus estimate for 'Operating Income (loss)- Farnell' stands at $15.67 million, down from $36.10 million in the same quarter last year [2] Group 3 - 'Operating Income (loss)- Electronic Components' is projected to reach $190.98 million, compared to $310.40 million in the same quarter last year [3] - Shares of Avnet have experienced a change of -2.9% in the past month, while the Zacks S&P 500 composite moved -6.7% [3] - With a Zacks Rank 4 (Sell), AVT is expected to underperform the overall market in the near future [3]

In a market like this, you should identify stocks most likely to underperform as a way of protecting your portfolio. Some stocks have had poor performances in the past years but then they have some very significant challenges that can take their value into a slump.Deep, top-line declines and restructuring deceleration have weighed down these same companies, and this usually consumes a lot of sales headwinds from various sectors. Realizing them early enough as an investor helps you make informed decisions an ...

Have you looked into how Avnet (AVT) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this distributor of electronic components, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. ...

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].