Financial Data and Key Metrics Changes - Sales for the quarter were $6.5 billion, a modest increase year-over-year, exceeding the top end of guidance, with a 3% year-over-year growth in constant currency [18][7] - Adjusted earnings per share were $2, marking the fifth consecutive quarter of adjusted EPS of $2 or greater [7] - Adjusted operating margin improved to 4.8%, up 15 basis points year-over-year and 36 basis points quarter-over-quarter [21] Business Line Data and Key Metrics Changes - Electronic Components business sales grew 4% year-over-year in constant currency, achieving a 5% operating income margin [11] - Farnell's sales increased 9% sequentially and 1% year-over-year in constant currency, with operating margins holding steady at 9% [13][22] - Overall gross margin improved to 12.5%, up 79 basis points quarter-over-quarter [19] Market Data and Key Metrics Changes - Sales growth was led by EMEA with nearly 10% growth and the Americas with 5% growth, while Asia experienced a decline of 10% [18] - Demand signals are realigning globally, with lead times trending down for several component categories, although constraints remain for high-end MCUs, power, and MOSFETs [8][9] Company Strategy and Development Direction - The company is focused on demand creation and customer expansion, with a strategic priority on improving margins through engineering teams and digital design tools [12][13] - The company aims to drive Farnell to over $2 billion in annual sales at double-digit operating margins [15] - The company is managing through an inventory correction phase, expecting it to take a few quarters to normalize [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the pricing environment remained stable, with some suppliers raising prices due to higher input costs [9][33] - The company anticipates a mixed demand environment moving forward, with some verticals showing strength while others remain weak [34][50] - Management expressed confidence in the quality of inventory and plans to improve turnover to align with near-term sales outlook [10][25] Other Important Information - Interest expense increased to $72 million, impacting adjusted diluted earnings per share by $0.37 year-over-year [23] - The company ended the quarter with a gross leverage of 2.3x, improving from the previous quarter [26] - The company paid a quarterly dividend of $0.29 per share, totaling $27 million, with $319 million remaining on the current share repurchase authorization [27] Q&A Session Summary Question: What drove better-than-expected revenue growth in Europe and the Americas? - Management indicated that automotive and industrial markets performed better than anticipated, along with positive contributions from defense and aerospace sectors [32] Question: How is inventory impacting working capital and free cash flow? - Management acknowledged that inventory levels were higher than desired, with a goal to reduce working capital into the low 80s days [35] Question: What is the outlook for core components margins? - Management stated that a mid-$6 billion revenue level is needed to sustain a 5% margin, with favorable mix and demand creation contributing to current performance [38] Question: How is pricing inflation affecting new inventory? - Management noted that pricing is impacting inventory levels but is more muted than in previous quarters, with about 25% of inventory increase attributed to pricing [42] Question: What is the expectation for inventory correction? - Management expects the inventory correction to take 2 to 3 quarters, with mixed signals across different verticals complicating the outlook [50] Question: How are accounts receivable collections performing? - Management reported improved quality of receivables, with no near-term headwinds from customer bankruptcies, and emphasized strategic management of accounts receivable [61]

Avnet Third Quarter 2023 Financial Results May 3, 2023 Safe Harbor Statement This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like "believes," "projected", "plans," "expects," "anticipates," "should," "will," "may," ...

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 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------------------------------------------|------------------------------------------------|-------------------- ...

Avnet, Inc. (NASDAQ:AVT) Q2 2023 Earnings Conference Call February 1, 2023 4:30 PM ET Company Participants Joe Burke - Vice President, Treasury & Investor Relations Phil Gallagher - Chief Executive Officer Ken Jacobson - Chief Financial Officer Conference Call Participants Melissa Fairbanks - Raymond James Ruplu Bhattacharya - Bank of America Matt Sheerin - Stifel Jim Suva - Citigroup William Stein - Truist Securities Joe Quatrochi - Wells Fargo Operator Welcome to the Avnet Second Quarter Fiscal Year 2023 ...

Avnet Second Quarter 2023 Financial Results February 1, 2023 Safe Harbor Statement This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like "believes," "projected", "plans," "expects," "anticipates," "should," "will," ...

Avnet, Inc. (NASDAQ:AVT) Q1 2023 Earnings Conference Call October 26, 2022 4:30 PM ET Company Participants Joe Burke - Vice President, Treasury and Investor Relations Phil Gallagher - Chief Executive Officer Ken Jacobson - Chief Financial Officer Conference Call Participants Melissa Fairbanks - Raymond James Matt Sheerin - Stifel Jim Suva - Citigroup William Stein - Truist Securities Ruplu Bhattacharya - Bank of America Joseph Cardoso - JPMorgan Operator Please standby. Our presentation will now begin. Welc ...

Avnet, Inc. (NASDAQ:AVT) Q4 2022 Earnings Conference Call August 10, 2022 4:30 PM ET Company Participants Joe Burke - VP, Treasury & IR Phil Gallagher - CEO Tom Liguori - CFO Ken Jacobson - CFO Conference Call Participants Nik Todorov - Longbow Research Toshiya Hari - Goldman Sachs Jim Suva - Citigroup Ruplu Bhattacharya - Bank of America Matt Sheerin - Stifel William Stein - Truist Securities Joe Quatrochi - Wells Fargo Joe Cardoso - JPMorgan Operator Welcome to the Avnet Fourth Quarter Fiscal Year 2022 Ea ...