Avnet(AVT) - 2025 Q2 - Quarterly Results

Financial Performance - Second quarter sales were $5.7 billion, down 8.7% from $6.2 billion in the prior year quarter[3]. - Diluted earnings per share (EPS) were $0.99, a decrease of 22.7% compared to $1.28 in the prior year quarter[3]. - Adjusted diluted EPS was $0.87, down 37.9% from $1.40 in the prior year quarter[3]. - Operating income margin was 2.7%, compared to 3.8% in the prior year quarter, reflecting a decrease of 107 basis points[3]. - Net income for the six months ended December 28, 2024, was $146,209 thousand, a decrease of 55.3% compared to $327,199 thousand for the same period in 2023[17]. - GAAP diluted earnings per share increased to $1.65 for the six months ended December 28, 2024, compared to $0.66 for the same period in 2023, marking a growth of 150%[24]. - GAAP net income for the fiscal year 2024 is $498,699,000, compared to $209,268,000 in 2023, reflecting a substantial year-over-year growth[25]. Cash Flow and Assets - Generated over $300 million in cash flow from operations, with inventory down $362 million or more than 6% from the prior quarter[3]. - Cash flows provided by operating activities were $444,152 thousand for the six months ended December 28, 2024, compared to a cash outflow of $83,575 thousand in the same period last year[17]. - Cash and cash equivalents decreased by $138,805 thousand during the six months ended December 28, 2024, from $310,941 thousand at the beginning of the period[17]. - Total assets decreased to $11,942,931 thousand as of December 28, 2024, down from $12,209,147 thousand on June 29, 2024, representing a decline of approximately 2.2%[15]. - Total current liabilities decreased to $4,206,060 thousand as of December 28, 2024, down from $4,465,269 thousand on June 29, 2024, a reduction of approximately 5.8%[15]. - Long-term debt increased to $2,567,379 thousand as of December 28, 2024, up from $2,406,629 thousand on June 29, 2024, an increase of approximately 6.7%[15]. Sales and Market Performance - Sales in Asia experienced year-over-year growth for the second consecutive quarter, with a 8.4% increase compared to the prior year[3]. - Sales for Avnet in the second quarter of fiscal 2025 reached $5,663.4 million, a decrease of 10.2% year-over-year[27]. - The Americas region experienced a sales decline of 13.8% year-over-year, while Asia saw an increase of 8.4%[27]. - Electronic Components sales for the fiscal year 2024 totaled $22,160 million, with a quarterly sales figure of $5,187.8 million[29]. Guidance and Projections - Guidance for the third quarter of fiscal 2025 projects sales between $5.05 billion and $5.35 billion, with a midpoint of $5.20 billion[5]. - The guidance implies a sequential sales decline of 6% to 11%, influenced by seasonal factors such as the Lunar New Year[6]. - The adjusted effective tax rate is expected to be between 22% and 26% for the upcoming quarter[7]. - Adjusted diluted earnings per share guidance for the third quarter of fiscal 2025 is projected between $0.65 and $0.75, with GAAP diluted earnings per share guidance ranging from $0.56 to $0.71[31]. Operational Efficiency - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming quarters[19]. - Adjusted operating income for the year to date December 28, 2024, was $328,430 thousand, compared to $168,944 thousand for the same period in 2023, reflecting a significant increase of 94.5%[24]. - GAAP operating income for the fiscal year 2024 is $844,367,000, compared to $236,257,000 in 2023, showing a significant increase[25]. - Adjusted operating income for the fiscal year 2024 is $900,047,000, up from $261,698,000 in 2023, indicating strong operational performance[25]. Foreign Currency Impact - The company reported a foreign currency loss of $9,887 thousand for the year to date December 28, 2024, compared to a loss of $4,783 thousand in the same period last year[24]. - The company reported a foreign currency gain of $27,730,000 in the fiscal year 2024, contributing positively to the overall income[25]. Restructuring and Expenses - Restructuring, integration, and other expenses for the fiscal year 2024 amounted to $52,550,000, compared to $7,051,000 in 2023[25].