Avnet Reports Second Quarter 2024 Financial Results

Core Viewpoint - Avnet, Inc. reported second-quarter results for fiscal 2024, showing a decline in sales and earnings compared to the previous year, but management remains optimistic about future growth opportunities despite economic challenges [1][2]. Financial Highlights - Sales for the second quarter were $6.2 billion, down from $6.7 billion in the same quarter last year, representing a year-over-year decline of 7.6% [2][3]. - Diluted earnings per share (EPS) were $1.28, a decrease of 51.3% from $2.63 in the prior year quarter [2][3]. - Adjusted diluted EPS was $1.40, down 30.0% from $2.00 in the prior year quarter [2][3]. - Operating income margin decreased to 3.8% from 4.5% in the prior year quarter [2][3]. - The company returned $59.0 million to shareholders through share repurchases and $27.8 million in dividends during the quarter [2][3]. Segment Performance - Electronic Components sales were $5.8 billion, down 7.9% year-over-year [3][29]. - Farnell sales were $392.8 million, a decrease of 3.7% compared to the previous year [3][29]. - Operating income margin for Electronic Components was 4.3%, down from 4.7% in the prior year [3][29]. - Farnell's operating income margin was 4.0%, significantly lower than 9.0% in the prior year [3][29]. Geographic Performance - Sales in the Americas were $1.6 billion, down 5.5% year-over-year [3][29]. - EMEA sales were $2.1 billion, a decline of 6.3% compared to the previous year [3][29]. - Asia sales decreased by 10.0% to $2.5 billion [3][29]. Outlook - For the third quarter of fiscal 2024, the company expects sales in the range of $5.55 billion to $5.85 billion, with a midpoint of $5.70 billion, indicating a sequential decline of 6% to 11% [5][6]. - Diluted EPS guidance is projected between $1.05 and $1.15, with a midpoint of $1.10 [5][6].