Avnet Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Avnet, Inc. (AVT) reported second-quarter sales of $6.2 billion and diluted EPS of $1.28, with adjusted diluted EPS of $1.40. The Electronic Components operating margin was 4.3%. CEO Phil Gallagher expressed satisfaction with the results, attributing them to the team's strong execution despite economic challenges. He also expressed confidence in the company's competitive position and experience in managing industry cycles.

Insights

Financial Analyst

The reported second quarter sales of $6.2 billion by Avnet, Inc. represent a significant indicator of the company's performance and its operational efficiency. The disclosed diluted EPS (Earnings Per Share) of $1.28 and an adjusted diluted EPS of $1.40 are critical metrics for shareholders, as EPS figures are often used to gauge a company's profitability on a per-share basis. The adjustment in EPS typically excludes one-time charges or benefits and provides a clearer picture of the company's ongoing operations.

Furthermore, the Electronic Components operating margin of 4.3% is a measure of profitability that reflects the percentage of sales that has turned into profits. While this margin might seem modest, it is crucial to compare it with industry standards and historical performance to fully assess its implications. The ability of Avnet's management to maintain profitability in a challenging economic environment is noteworthy and suggests a degree of operational resilience that may reassure investors.

Market Research Analyst

Avnet's performance must be contextualized within the broader electronic components distribution market. The company's ability to meet expectations in a difficult economic climate is indicative of a strong competitive position. It is essential to consider the impact of global supply chain issues and how Avnet's logistics and inventory management strategies are adapting. The company's confidence in managing through industry cycles could be a testament to its strategic planning and risk management capabilities.

For stakeholders, the short-term outlook may be influenced by current economic headwinds such as inflation, interest rates and potential disruptions in the tech sector. Long-term implications hinge on the company's agility in responding to market demands and technological advancements. Avnet's emphasis on execution and experience in navigating industry cycles can be seen as a positive signal for its ability to sustain growth and profitability over time.

Economist

Avnet's results can also be viewed through the lens of macroeconomic conditions. The company's performance amidst economic challenges underscores the cyclical nature of the electronics industry and its correlation with broader economic trends. Investors should be aware of the potential for economic downturns to affect consumer and business spending on electronics, which could impact Avnet's sales. However, the company's mention of a strong competitive position may suggest that it is well-equipped to weather such downturns relative to its competitors.

It is also important to consider how shifts in monetary policy and trade relations could affect Avnet's international operations. As an economist would note, a company's success is not only measured by its direct performance but also by its strategic response to external economic forces. Avnet's forward-looking statements indicate a proactive approach to navigating anticipated challenges over the next few quarters, which may be critical in maintaining investor confidence.

Second quarter sales of $6.2 billion and diluted EPS of $1.28

Adjusted diluted EPS of $1.40

Electronic Components operating margin of 4.3%

PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (Nasdaq: AVT) today announced results for its second quarter ended December 30, 2023.

Commenting on the Company’s financial results, Avnet Chief Executive Officer Phil Gallagher stated, “We are pleased with the second quarter results, which were in line with our expectations. Our team continues to execute well despite the current economic environment and related challenges. We are confident that our strong competitive position and experience managing through many industry cycles will serve us well as we navigate through the next few quarters. We remain encouraged about future opportunities for growth across our end markets.”

Fiscal Second Quarter Key Financial Highlights:

• Sales of $6.2 billion, compared with $6.7 billion in the prior year quarter.
• Diluted earnings per share of $1.28, compared with $2.63 in the prior year quarter.
  • Adjusted diluted earnings per share of $1.40, compared with $2.00 in the prior year quarter.
• Operating income margin of 3.8%, compared with 4.5% in the prior year quarter.
  • Adjusted operating income margin of 3.9%.
  • Electronic Components operating income margin of 4.3%.
  • Farnell operating income margin of 4.0%.
• Trailing twelve month cash flows from operations of $169.2 million.
• Returned $59.0 million to shareholders in the quarter from share repurchases.
• Returned $27.8 million to shareholders in dividends during the quarter.

Key Financial Metrics ($ in millions, except per share data)
Second Quarter Results (GAAP)
		Dec – 23				Dec – 22				Change Y/Y				Sep – 23				Change Q/Q
Sales		$	6,204.9			$	6,717.5			(7.6	)%			$	6,335.6			(2.1	)%
Operating Income		$	236.3			$	299.0			(21.0	)%			$	253.8			(6.9	)%
Operating Income Margin			3.8	%			4.5	%		(64	)bps				4.0	%		(20	)bps
Diluted Earnings Per Share (EPS)		$	1.28			$	2.63			(51.3	)%			$	2.25			(43.1	)%
Second Quarter Results (Non-GAAP)(1)
		Dec – 23				Dec – 22				Change Y/Y				Sep – 23				Change Q/Q
Adjusted Operating Income		$	242.2			$	300.5			(19.4	)%			$	261.7			(7.5	)%
Adjusted Operating Income Margin			3.9	%			4.5	%		(57	)bps				4.1	%		(23	)bps
Adjusted Diluted Earnings Per Share (EPS)		$	1.40			$	2.00			(30.0	)%			$	1.61			(13.0	)%
Segment and Geographical Mix
		Dec – 23				Dec – 22				Change Y/Y				Sep – 23				Change Q/Q
Electronic Components (EC) Sales		$	5,812.1			$	6,309.5			(7.9	)%			$	5,914.4			(1.7	)%
EC Operating Income Margin			4.3	%			4.7	%		(43	)bps				4.6	%		(34	)bps
Farnell Sales		$	392.8			$	408.0			(3.7	)%			$	421.2			(6.8	)%
Farnell Operating Income Margin			4.0	%			9.0	%		(504	)bps				4.2	%		(20	)bps
Americas Sales		$	1,588.5			$	1,681.2			(5.5	)%			$	1,573.5			1.0	%
EMEA Sales		$	2,113.6			$	2,255.9			(6.3	)%			$	2,308.0			(8.4	)%
Asia Sales		$	2,502.8			$	2,780.4			(10.0	)%			$	2,454.1			2.0	%

_______________

(1)	A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.

Outlook for the Third Quarter of Fiscal 2024 Ending on March 30, 2024

		Guidance Range		Midpoint
Sales		$5.55B – $5.85B		$5.70B
Diluted EPS (1)		$1.05 – $1.15		$1.10

_______________

(1)	A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release.

The above guidance implies a sequential sales decline of 6% to 11% and assumes sales declines for the Western regions versus typical seasonal growth, and a typical seasonal decline in Asia due to the Lunar New Year holiday.

The above guidance also excludes restructuring, integration and other expenses, foreign currency gains and losses, and certain income tax adjustments. The above guidance assumes similar interest expense to the second quarter and an effective tax rate of between 22% and 26%. The above guidance assumes 91 million average diluted shares outstanding and average currency exchange rates as shown in the table below:

		Q3 Fiscal
		2024		Q2 Fiscal		Q3 Fiscal
		Guidance		2024		2023
Euro to U.S. Dollar		$1.08		$1.08		$1.07
GBP to U.S. Dollar		$1.27		$1.24		$1.21

Today’s Conference Call and Webcast Details

Avnet will host a conference call and webcast today at 8:00 a.m. PT / 11:00 a.m. ET to discuss its financial results, provide a business update and answer questions.

• Live conference call: 877-407-8112 (domestic) or 201-689-8840 (international)
• Conference call replay available through February 7, 2024: 877-660-6853 or 201-612-7415 and using Conference ID: 13743228
• Live and archived webcast can be accessed via Avnet’s Investor Relations web page at: https://ir.avnet.com

Forward-Looking Statements

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,” “estimates,” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2023 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: geopolitical events and military conflicts; pandemics and other health-related crises; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors, including supply shortages; relationships with key suppliers and allocations of products by suppliers, including increased non-cancellable/non-returnable orders; accounts receivable defaults; risks relating to the Company’s international sales and operations, including risks relating to repatriating cash, foreign currency fluctuations, inflation, duties and taxes, sanctions and trade restrictions, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures, and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers, and suppliers, including as a result of issues caused by military conflicts, terrorist attacks, natural and weather-related disasters, pandemics and health related crises, warehouse modernization, and relocation efforts; risks related to cyber security attacks, other privacy and security incidents, and information systems failures, including related to current or future implementations, integrations, and upgrades; general economic and business conditions (domestic, foreign, and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity, and access to financing; constraints on employee retention and hiring; and legislative or regulatory changes.

Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.

About Avnet

As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for more than a century. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)

AVNET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		Second Quarters Ended								Six Months Ended
		December 30,				December 31,				December 30,				December 31,
		2023				2022				2023				2022
		(Thousands, except per share data)
Sales		$	6,204,914			$	6,717,521			$	12,540,562			$	13,467,654
Cost of sales			5,498,730				5,933,421				11,086,273				11,915,381
Gross profit			706,184				784,100				1,454,289				1,552,273
Selling, general and administrative expenses			464,692				485,127				951,977				962,764
Restructuring, integration and other expenses			5,235				—				12,286				—
Operating income			236,257				298,973				490,026				589,509
Other (expense) income, net			(8,397	)			1,476				(2,437	)			1,800
Interest and other financing expenses, net			(74,302	)			(59,020	)			(145,098	)			(104,118	)
Gain on legal settlements and other			—				61,705				86,499				61,705
Income before taxes			153,558				303,134				428,990				548,896
Income tax expense			35,627				59,248				101,791				120,749
Net income		$	117,931			$	243,886			$	327,199			$	428,147
Earnings per share:
Basic		$	1.31			$	2.67			$	3.60			$	4.62
Diluted		$	1.28			$	2.63			$	3.54			$	4.55
Shares used to compute earnings per share:
Basic			90,253				91,192				90,874				92,621
Diluted			91,792				92,755				92,485				94,195
Cash dividends paid per common share		$	0.31			$	0.29			$	0.62			$	0.58

AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		December 30,			July 1,
		2023			2023
		(Thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	272,850		$	288,230
Receivables			4,508,742			4,763,788
Inventories			6,115,999			5,465,031
Prepaid and other current assets			241,371			233,804
Total current assets			11,138,962			10,750,853
Property, plant and equipment, net			563,758			441,557
Goodwill			787,007			780,629
Operating lease assets			227,145			221,698
Other assets			280,302			282,422
Total assets		$	12,997,174		$	12,477,159
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt		$	696,329		$	70,636
Accounts payable			3,308,060			3,373,820
Accrued expenses and other			705,745			753,130
Short-term operating lease liabilities			55,424			51,792
Total current liabilities			4,765,558			4,249,378
Long-term debt			2,753,521			2,988,029
Long-term operating lease liabilities			191,521			190,621
Other liabilities			276,191			297,462
Total liabilities			7,986,791			7,725,490
Shareholders’ equity			5,010,383			4,751,669
Total liabilities and shareholders’ equity		$	12,997,174		$	12,477,159

AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Six Months Ended
		December 30, 2023				December 31, 2022
		(Thousands)
Cash flows from operating activities:
Net income		$	327,199			$	428,147
Non-cash and other reconciling items:
Depreciation and amortization			42,727				43,705
Amortization of operating lease assets			26,205				26,414
Deferred income taxes			12,599				(15,581	)
Stock-based compensation			19,951				21,338
Other, net			27,181				7,199
Changes in (net of effects from businesses acquired and divested):
Receivables			287,320				(469,650	)
Inventories			(610,008	)			(686,884	)
Accounts payable			(78,082	)			(341,210	)
Accrued expenses and other, net			(138,667	)			20,021
Net cash flows used for operating activities			(83,575	)			(966,501	)
Cash flows from financing activities:
Borrowings under accounts receivable securitization, net			58,600				352,200
Borrowings under senior unsecured credit facility, net			272,747				1,132,245
Borrowings under bank credit facilities and other debt, net			30,752				47,712
Repurchases of common stock			(86,027	)			(221,282	)
Dividends paid on common stock			(56,138	)			(53,304	)
Other, net			2,665				(1,048	)
Net cash flows provided by financing activities			222,599				1,256,523
Cash flows from investing activities:
Purchases of property, plant and equipment			(158,088	)			(111,436	)
Other, net			373				(16,279	)
Net cash flows used for investing activities			(157,715	)			(127,715	)
Effect of currency exchange rate changes on cash and cash equivalents			3,311				8,778
Cash and cash equivalents:
— (decrease) increase			(15,380	)			171,085
— at beginning of period			288,230				153,693
— at end of period		$	272,850			$	324,778

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also discloses certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other income (expense), (iv) adjusted income before income taxes, (v) adjusted income tax expense (benefit), and (vi) adjusted diluted earnings per share.

There are also references to the impact of foreign currency in the discussion of the Company’s results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet’s subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company’s results of operations, results excluding this impact are referred to as “constant currency.” Management believes sales in constant currency is a useful measure for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.

Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, are useful measures to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income and operating expenses without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, and amortization of acquired intangible assets and other.

Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.

Management also believes income tax expense (benefit), net income and diluted earnings per share adjusted for the impact of the items described above, gain on legal settlements and other, foreign currency gains and losses and certain items impacting income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation allowances and unrecognized tax benefits, income tax audit settlements and adjustments to effective tax rate based upon the expected long-term adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted earnings per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.

Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.

						Quarters Ended
		Fiscal Year				December 30,				September 30,
		2024*				2023*				2023
		($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses		$	951,977			$	464,692			$	487,286
Amortization of intangible assets			(1,590	)			(712	)			(878	)
Adjusted operating expenses			950,387				463,980				486,408
GAAP operating income		$	490,026			$	236,257			$	253,769
Restructuring, integration and other expenses			12,286				5,235				7,051
Amortization of intangible assets			1,590				712				878
Adjusted operating income			503,902				242,204				261,698
GAAP other (expense) income, net		$	(2,437	)		$	(8,397	)		$	5,960
Foreign currency loss (gain), net			9,200				9,200				—
Adjusted other (expense) income, net			6,763				803				5,960
GAAP income before income taxes		$	428,990			$	153,558			$	275,432
Restructuring, integration and other expenses			12,286				5,235				7,051
Amortization of intangible assets			1,590				712				878
Foreign currency loss (gain), net			9,200				9,200				—
Gain on legal settlements and other			(86,499	)			—				(86,499	)
Adjusted income before income taxes			365,567				168,705				196,862
GAAP income tax expense		$	101,791			$	35,627			$	66,164
Restructuring, integration and other expenses			2,977				1,274				1,703
Amortization of intangible assets			359				156				203
Foreign currency loss (gain), net			2,034				2,034				—
Gain on legal settlements and other			(20,434	)			—				(20,434	)
Income tax expense items, net			1,009				1,399				(390	)
Adjusted income tax expense			87,736				40,490				47,246
GAAP net income		$	327,199			$	117,931			$	209,268
Restructuring, integration and other expenses (net of tax)			9,309				3,961				5,348
Amortization of intangible assets (net of tax)			1,231				556				675
Foreign currency loss (gain), net (net of tax)			7,166				7,166				—
Gain on legal settlements and other (net of tax)			(66,065	)			—				(66,065	)
Income tax expense items, net			(1,009	)			(1,399	)			390
Adjusted net income			277,831				128,215				149,616
GAAP diluted earnings per share		$	3.54			$	1.28			$	2.25
Restructuring, integration and other expenses (net of tax)			0.09				0.04				0.06
Amortization of intangible assets (net of tax)			0.01				0.01				0.01
Foreign currency loss (gain), net (net of tax)			0.08				0.08				—
Gain on legal settlements and other (net of tax)			(0.71	)			—				(0.71	)
Income tax expense items, net			(0.01	)			(0.01	)			0.00
Adjusted diluted EPS			3.00				1.40				1.61

_______________

*	May not foot/cross foot due to rounding.

						Quarters Ended
		Fiscal Year				July 1,				April 1,				December 31,				October 1,
		2023*				2023*				2023				2022				2022
		($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses		$	1,967,305			$	506,322			$	498,219			$	485,127			$	477,636
Amortization of intangible assets			(6,053	)			(878	)			(876	)			(1,541	)			(2,759	)
Adjusted operating expenses			1,961,252				505,444				497,343				483,586				474,877
GAAP operating income		$	1,186,800			$	283,662			$	313,629			$	298,973			$	290,537
Restructuring, integration and other expenses			28,038				28,038				—				—				—
Amortization of intangible assets			6,053				878				876				1,541				2,759
Adjusted operating income			1,220,891				312,578				314,505				300,514				293,296
GAAP income before income taxes		$	982,876			$	190,393			$	243,587			$	303,134			$	245,762
Restructuring, integration and other expenses			28,038				28,038				—				—				—
Amortization of intangible assets			6,053				878				876				1,541				2,759
Gain on legal settlements and other			(37,037	)			24,669				—				(61,705	)			—
Adjusted income before income taxes			979,931				243,978				244,463				242,970				248,521
GAAP income tax expense		$	212,048			$	35,138			$	56,161			$	59,248			$	61,501
Restructuring, integration and other expenses			6,007				6,007				—				—				—
Amortization of intangible assets			1,360				207				203				345				605
Gain on legal settlements and other			(8,711	)			5,828				—				(14,539	)			—
Income tax expense items, net			16,453				5,583				3,529				12,287				(4,946	)
Adjusted income tax expense			227,157				52,763				59,893				57,341				57,160
GAAP net income		$	770,828			$	155,255			$	187,426			$	243,886			$	184,261
Restructuring, integration and other expenses (net of tax)			22,031				22,031				—				—				—
Amortization of intangible assets (net of tax)			4,693				671				673				1,196				2,154
Gain on legal settlements and other (net of tax)			(28,326	)			18,841				—				(47,166	)			—
Income tax expense items, net			(16,453	)			(5,583	)			(3,529	)			(12,287	)			4,946
Adjusted net income			752,774				191,215				184,570				185,629				191,361
GAAP diluted earnings per share		$	8.26			$	1.68			$	2.03			$	2.63			$	1.93
Restructuring, integration and other expenses (net of tax)			0.24				0.24				—				—				—
Amortization of intangible assets (net of tax)			0.05				0.01				0.01				0.01				0.02
Gain on legal settlements and other (net of tax)			(0.31	)			0.20				—				(0.51	)			—
Income tax expense items, net			(0.18	)			(0.06	)			(0.04	)			(0.13	)			0.05
Adjusted diluted EPS			8.06				2.06				2.00				2.00				2.00

_______________

*	May not foot/cross foot due to rounding.

Sales in Constant Currency

The following table presents reported sales growth rates and sales growth rates in constant currency for the second quarter and first six months of fiscal 2024 compared to the second quarter and first six months of fiscal 2023.

		Quarter Ended																Six Months Ended
		December 30, 2023																December 30, 2023
		Sales Year-Year % Change				Sales Year-Year % Change in Constant Currency				Sales Sequential % Change				Sales Sequential % Change in Constant Currency				Sales Year-Year % Change				Sales Year-Year % Change in Constant Currency
Avnet		(7.6	)%			(8.7	)%			(2.1	)%			(1.5	)%			(6.9	)%			(8.3	)%
Avnet by region
Americas		(5.5	)%			(5.5	)%			1.0	%			1.0	%			(5.9	)%			(5.9	)%
EMEA		(6.3	)			(10.2	)			(8.4	)			(7.3	)			0.8				(4.3	)
Asia		(10.0	)			(9.4	)			2.0				2.3				(13.4	)			(12.7	)
Avnet by segment
EC		(7.9	)%			(8.9	)%			(1.7	)%			(1.2	)%			(7.2	)%			(8.5	)%
Farnell		(3.7	)			(6.0	)			(6.8	)			(5.9	)			(2.4	)			(4.9	)

Historical Segment Financial Information

						Quarters Ended
		Fiscal				Second Quarter				First Quarter
		Year				December 30,				September 30,
		2024*				2023				2023
		($ in millions)
Sales:
Electronic Components		$	11,726.5			$	5,812.1			$	5,914.4
Farnell			814.1				392.8				421.2
Avnet sales		$	12,540.6			$	6,204.9			$	6,335.6
Operating income:
Electronic Components		$	520.7			$	247.9			$	272.8
Farnell			33.4				15.7				17.7
			554.1				263.6				290.5
Corporate expenses			(50.2	)			(21.4	)			(28.7	)
Restructuring, integration and other expenses			(12.3	)			(5.2	)			(7.1	)
Amortization of acquired intangible assets			(1.6	)			(0.7	)			(0.9	)
Avnet operating income		$	490.0			$	236.3			$	253.8
Sales by geographic area:
Americas		$	3,162.0			$	1,588.5			$	1,573.5
EMEA			4,421.6				2,113.6				2,308.0
Asia			4,957.0				2,502.8				2,454.1
Avnet sales		$	12,540.6			$	6,204.9			$	6,335.6

_______________

*	May not foot/cross foot due to rounding.

				Quarters Ended
	Fiscal				Fourth Quarter				Third Quarter				Second Quarter				First Quarter
	Year				July 1,				April 1,				December 31,				October 1,
	2023*				2023*				2023				2022				2022
	($ in millions)
Sales:
Electronic Components	$	24,802.6			$	6,109.2			$	6,059.6			$	6,309.5			$	6,324.2
Farnell		1,734.3				445.4				455.0				408.0				425.9
Avnet sales	$	26,536.9			$	6,554.6			$	6,514.6			$	6,717.5			$	6,750.1
Operating income:
Electronic Components	$	1,179.6			$	310.4			$	305.2			$	296.7			$	267.3
Farnell		165.5				36.1				40.9				36.9				51.6
		1,345.1				346.5				346.1				333.6				318.9
Corporate expenses		(124.2	)			(33.9	)			(31.6	)			(33.1	)			(25.6	)
Restructuring, integration and other expenses		(28.0	)			(28.0	)			—				—				—
Amortization of acquired intangible assets		(6.1	)			(0.9	)			(0.9	)			(1.5	)			(2.8	)
Avnet operating income	$	1,186.8			$	283.7			$	313.6			$	299.0			$	290.5
Sales by geographic area:
Americas	$	6,807.7			$	1,732.7			$	1,714.9			$	1,681.2			$	1,678.9
EMEA		9,229.4				2,450.6				2,393.4				2,255.9				2,129.5
Asia		10,499.8				2,371.3				2,406.3				2,780.4				2,941.7
Avnet sales	$	26,536.9			$	6,554.6			$	6,514.6			$	6,717.5			$	6,750.1

_______________

*	May not foot/cross foot due to rounding.

Guidance Reconciliation

The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the third quarter of fiscal 2024.

	Low End of				High End of
	Guidance Range				Guidance Range
Adjusted diluted earnings per share guidance	$	1.05			$	1.15
Restructuring, integration and other expenses (net of tax)		(0.20	)			(0.10	)
GAAP diluted earnings per share guidance	$	0.85			$	1.05

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131267068/en/

Investor Relations Contact

InvestorRelations@Avnet.com

Media Relations Contact

Jeanne Forbis, 480-643-7499

Jeanne.Forbis@Avnet.com

Source: Avnet

FAQ

What were Avnet Inc.'s second-quarter sales?

Avnet Inc. reported second-quarter sales of $6.2 billion.

What was Avnet Inc.'s diluted EPS for the second quarter?

Avnet Inc. reported diluted EPS of $1.28 for the second quarter.

What was Avnet Inc.'s adjusted diluted EPS for the second quarter?

Avnet Inc. reported adjusted diluted EPS of $1.40 for the second quarter.

What was Avnet Inc.'s Electronic Components operating margin?

Avnet Inc.'s Electronic Components operating margin was 4.3%.

Who is Avnet Inc.'s Chief Executive Officer?

Avnet Inc.'s Chief Executive Officer is Phil Gallagher.

What did Avnet Inc.'s CEO say about the second-quarter results?

Avnet Inc.'s CEO expressed satisfaction with the second-quarter results and confidence in the company's competitive position and experience in managing industry cycles.