Avnet(AVT) - 2024 Q3 - Quarterly Results

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]