Avnet(US:AVT)2025-10-29 12:02Financial Performance - First quarter sales reached $5.9 billion, marking a year-over-year growth of 5.3% compared to $5.6 billion in the same quarter last year[3] - Diluted earnings per share (EPS) were $0.61, with adjusted diluted EPS at $0.84, reflecting a year-over-year decrease of 7.6% and 8.7% respectively[4] - Operating income margin was 2.4%, with an adjusted operating income margin of 2.6%, down from 2.5% and 3.0% year-over-year[4] - Net income for the first quarter of fiscal 2026 was $51,745,000, a decrease of 12.5% compared to $58,956,000 in the same period last year[17] - Adjusted net income for the first quarter was $70,795,000, reflecting a strong operational performance despite the challenges faced[25] Shareholder Returns - The company returned $138 million to shareholders through share repurchases, representing 3.2% of shares outstanding, and repurchased approximately 8% of outstanding shares over the past four quarters[3] Sales Growth by Region - Sales in the Americas increased by 3.0% year-over-year, while Asia experienced a 9.9% growth, marking the fifth consecutive quarter of year-over-year sales growth in Asia[4] - The Americas region saw a sales increase of 3.0%, while EMEA experienced a slight decline of (0.1)%, and Asia reported a robust growth of 9.9%[28] - Sales in Asia increased to $2,862.8 million, representing a growth from $2,606.1 million year-over-year[29] Guidance and Projections - The guidance for the second quarter of fiscal 2026 projects sales between $5.85 billion and $6.15 billion, with a midpoint of $6.00 billion[5] - The adjusted diluted EPS guidance for the second quarter is set between $0.90 and $1.00, with a midpoint of $0.95[5] - GAAP diluted earnings per share guidance for Q2 fiscal 2026 is projected between $0.74 and $0.92, with adjusted diluted earnings per share guidance ranging from $0.90 to $1.00[31] Cash Flow and Assets - Total cash flows used for operating activities were $(144,584,000), compared to $106,325,000 provided in the prior year, indicating a significant cash outflow[17] - Cash and cash equivalents at the end of the period were $175,465,000, down from $267,521,000 at the beginning of the period[17] - Total assets increased to $12.41 billion, up from $12.12 billion in the previous quarter[15] - Current liabilities rose to $4.37 billion, compared to $4.13 billion in the prior quarter, with short-term debt increasing to $189.3 million[15] Segment Performance - Electronic Components segment sales increased to $5,499.7 million in Q3 2025 from $5,257.1 million in Q3 2024, representing a growth of 4.6%[29] - Gross profit for the Electronic Components segment decreased to $507.1 million, with a gross profit margin of 9.2%, down from 9.8% in the previous year[29] - Farnell segment sales rose to $398.9 million, up from $347.1 million, reflecting a growth of 14.9%[29] - Total reportable segment operating income decreased to $176.1 million from $199.3 million year-over-year[29] - Operating income for the Electronic Components segment fell to $159.0 million, with an operating income margin of 2.9%, down from 3.8%[29] - Farnell's operating income significantly improved to $17.1 million, with an operating income margin of 4.3%, compared to 0.5% in the previous year[29] Foreign Currency Impact - The company reported a foreign currency loss of $6,483,000, which affected overall income before income taxes[25] Cost Management - Corporate expenses decreased to $(25.4) million from $(30.3) million, indicating improved cost management[29]