Avnet Reports Second Quarter Fiscal 2023 Financial Results

Rhea-AI Summary

Avnet reported $6.7 billion in sales for Q2, a 14.5% increase year-over-year, while operating income rose to $299 million. The diluted EPS surged to $2.63, a notable 75.3% rise from the previous year. Adjusted diluted EPS was $2.00. Higher interest expenses impacted adjusted EPS by $0.31. The operating income margin improved to 4.5%, with Electronic Components leading at 4.7%, while Farnell's margin declined to 9.0%. For Q3 FY2023, Avnet projects sales between $6.15B and $6.45B and adjusted diluted EPS of $1.75 to $1.85, reflecting expected decline in sales due to seasonal factors.

Positive

• Sales increased 14.5% year-over-year to $6.7 billion.
• Diluted EPS rose 75.3% to $2.63.
• Operating income grew by 41.2% to $299 million.
• Operating income margin improved to 4.5%, up 84 basis points.

Negative

• Higher interest expenses negatively impacted adjusted EPS by $0.31.
• Farnell's operating income margin decreased by 461 basis points to 9.0%.
• Q3 guidance suggests a sequential sales decline of 4% to 8%.

Second quarter sales of $6.7 billion up 14.5% year over year

Operating income of $299 million grew nearly three times faster than sales

PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (Nasdaq: AVT) today announced results for its second quarter ended December 31, 2022.

Commenting on the Company’s financial results, Avnet Chief Executive Officer Phil Gallagher stated, “We delivered another strong quarter of sales and earnings to close out 2022. This past year we were able to accelerate our sales growth, expand operating margins and gain market share thanks in large part to our customers’ partnership and our employees’ dedication and commitment. As we head into 2023, we are closely monitoring near-term market dynamics and remain encouraged about the medium-term growth opportunities across our diverse end markets.”

Fiscal Second Quarter Key Financial Highlights:

• Sales of $6.7 billion up 14.5% year over year from $5.9 billion.
  • On a constant currency basis, sales increased 21.1% year over year.
• Diluted earnings per share increased to $2.63, compared with $1.50 in the prior year quarter.
  • Adjusted diluted earnings per share of $2.00, compared with $1.51 in the prior year quarter.
  • Higher interest expense negatively impacted second quarter adjusted diluted earnings per share by $0.31 year over year.
• Operating income margin of 4.5%, increased 84 basis points year over year.
  • Adjusted operating income margin of 4.5%, increased 80 basis points year over year.
• Electronic Components operating income margin of 4.7%, increased 122 basis points year over year.
• Farnell operating income margin of 9.0% decreased 461 basis points year over year.
• Returned $64 million to shareholders in the quarter from share repurchases, representing 1.8% of outstanding shares.
• Returned $26 million to shareholders in dividends during the quarter.

Key Financial Metrics

($ in millions, except per share data)

Second Quarter Results (GAAP)
		Dec – 22				Dec – 21				Change Y/Y			Sep – 22				Change Q/Q
Sales		$	6,717.5			$	5,865.2			14.5	%		$	6,750.1			(0.5	)%
Operating Income			299.0				211.7			41.2	%			290.5			2.9	%
Operating Income Margin			4.5	%			3.6	%		84	bps			4.3	%		15	bps
Diluted Earnings Per Share (EPS)		$	2.63			$	1.50			75.3	%		$	1.93			36.3	%
Second Quarter Results (Non-GAAP)(1)
		Dec – 22				Dec – 21				Change Y/Y			Sep – 22				Change Q/Q
Adjusted Operating Income			300.5				215.5			39.5	%			293.3			2.5	%
Adjusted Operating Income Margin			4.5	%			3.7	%		80	bps			4.4	%		12	bps
Adjusted Diluted Earnings Per Share (EPS)		$	2.00			$	1.51			32.5	%		$	2.00			-	%
Segment and Geographical Mix
		Dec – 22				Dec – 21				Change Y/Y			Sep – 22				Change Q/Q
Electronic Components (EC) Sales		$	6,309.5			$	5,424.3			16.3	%		$	6,324.2			(0.2	)%
EC Operating Income Margin			4.7	%			3.5	%		122	bps			4.2	%		47	bps
Farnell Sales		$	408.0			$	440.9			(7.5)	%		$	425.9			(4.2	)%
Farnell Operating Income Margin			9.0	%			13.7	%		(461	) bps			12.1	%		(308	) bps
Americas Sales		$	1,681.2			$	1,391.5			20.8	%		$	1,678.9			0.1	%
EMEA Sales			2,255.9				1,840.8			22.6	%			2,129.5			5.9	%
Asia Sales			2,780.4				2,632.9			5.6	%			2,941.7			(5.5	)%

_______________
(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 2023 Ending on April 1, 2023

		Guidance Range		Midpoint
Sales		$6.15B – $6.45B		$6.30B
Adjusted Diluted EPS(1)		$1.75 – $1.85		$1.80

_______________
(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 is based upon current market conditions and implies a sequential growth rate range of down 4% to down 8%. This guidance assumes a seasonal decline in sales from Asia primarily due to the Lunar New Year and below seasonal growth for the western regions.

The above guidance also excludes amortization of intangibles 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 92.5 million average diluted shares outstanding and average currency exchange rates as shown in the table below:

		Q3 Fiscal
		2023		Q2 Fiscal		Q3 Fiscal
		Guidance		2023		2022
Euro to U.S. Dollar		$1.09		$1.02		$1.12
GBP to U.S. Dollar		$1.24		$1.17		$1.34

Today’s Conference Call and Webcast Details

Avnet will host a quarterly webcast and teleconference today at 1:30 p.m. PT and 4:30 p.m. ET to discuss its financial results and provide a corporate update. The webcast can be accessed via Avnet’s Investor Relations web page at: https://ir.avnet.com.

Those who would still like to participate in the live call can dial 877-407-8112 or 201-689-8840. A replay of the conference call will be available for 90 days, through May 2, 2023, at 5:00 p.m. ET, and can be accessed by dialing: 877-660-6853 or 201-612-7415 and using Conference ID: 13734794.

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 2, 2022 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, including COVID-19; 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 the ability to repatriate 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 or 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 affecting the Company’s businesses.

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 an entire century. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. 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 31,				January 1,				December 31,				January 1,
		2022				2022				2022				2022
		(Thousands, except per share data)
Sales		$	6,717,521			$	5,865,217			$	13,467,654			$	11,449,912
Cost of sales			5,933,421				5,152,182				11,915,381				10,077,185
Gross profit			784,100				713,035				1,552,273				1,372,727
Selling, general and administrative expenses			485,127				501,363				962,764				987,540
Restructuring, integration and other expenses			—				—				—				5,272
Operating income			298,973				211,672				589,509				379,915
Other income, net			1,476				1,737				1,800				1,327
Interest and other financing expenses, net			(59,020	)			(21,630	)			(104,118	)			(44,474	)
Gain on legal settlement			61,705				—				61,705				—
Income before taxes			303,134				191,779				548,896				336,768
Income tax expense			59,248				40,958				120,749				74,629
Net income		$	243,886			$	150,821			$	428,147			$	262,139
Earnings per share:
Basic		$	2.67			$	1.52			$	4.62			$	2.64
Diluted		$	2.63			$	1.50			$	4.55			$	2.60
Shares used to compute earnings per share:
Basic			91,192				99,032				92,621				99,340
Diluted			92,755				100,286				94,195				100,701
Cash dividends paid per common share		$	0.29			$	0.24			$	0.58			$	0.48

AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
		December 31,				July 2,
		2022				2022
		(Thousands)
ASSETS
Current assets:
Cash and cash equivalents		$	324,778			$	153,693
Receivables			4,789,402				4,301,002
Inventories			4,972,898				4,244,148
Prepaid and other current assets			216,487				177,783
Total current assets			10,303,565				8,876,626
Property, plant and equipment, net			378,269				315,204
Goodwill			755,030				758,833
Operating lease assets			229,537				227,138
Other assets			263,473				210,731
Total assets		$	11,929,874			$	10,388,532
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt		$	209,401			$	174,422
Accounts payable			3,106,667				3,431,683
Accrued expenses and other			688,643				591,020
Short-term operating lease liabilities			52,944				54,529
Total current liabilities			4,057,655				4,251,654
Long-term debt			2,979,823				1,437,400
Long-term operating lease liabilities			198,986				199,418
Other liabilities			263,747				307,300
Total liabilities			7,500,211				6,195,772
Shareholders’ equity			4,429,663				4,192,760
Total liabilities and shareholders’ equity		$	11,929,874			$	10,388,532

AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Six Months Ended
		December 31, 2022				January 1, 2022
		(Thousands)
Cash flows from operating activities:
Net income		$	428,147			$	262,139
Non-cash and other reconciling items:
Depreciation			39,411				43,876
Amortization			4,294				8,964
Amortization of operating lease assets			26,414				27,426
Deferred income taxes			(15,581	)			(4,451	)
Stock-based compensation			21,338				19,556
Other, net			7,199				10,281
Changes in (net of effects from businesses acquired and divested):
Receivables			(469,650	)			(558,702	)
Inventories			(686,884	)			(359,755	)
Accounts payable			(341,210	)			328,574
Accrued expenses and other, net			20,021				(41,117	)
Net cash flows used for operating activities			(966,501	)			(263,209	)
Cash flows from financing activities:
Borrowings under accounts receivable securitization, net			352,200				190,400
Borrowings under senior unsecured credit facility, net			1,132,245				109,669
Borrowings (repayments) under bank credit facilities and other debt, net			47,712				(1,550	)
Repurchases of common stock			(221,282	)			(45,570	)
Dividends paid on common stock			(53,304	)			(47,642	)
Other, net			(1,048	)			(6,069	)
Net cash flows provided by financing activities			1,256,523				199,238
Cash flows from investing activities:
Purchases of property, plant and equipment			(111,436	)			(22,116	)
Other, net			(16,279	)			68,270
Net cash flows (used) provided by investing activities			(127,715	)			46,154
Effect of currency exchange rate changes on cash and cash equivalents			8,778				(14,056	)
Cash and cash equivalents:
— increase (decrease)			171,085				(31,873	)
— at beginning of period			153,693				199,691
— at end of period		$	324,778			$	167,818

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 and other, 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, gains on legal settlements, and certain items impacting other income (expense) and 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 the adjusted interim effective tax rate based upon the expected annual 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.

		Fiscal				Quarters Ended
		Year to Date				December 31,				October 1,
		2023*				2022				2022
		($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses		$	962,764			$	485,127			$	477,636
Amortization of intangible assets and other			(4,300	)			(1,541	)			(2,759	)
Adjusted operating expenses			958,464				483,586				474,877
GAAP operating income		$	589,509			$	298,973			$	290,537
Amortization of intangible assets and other			4,300				1,541				2,759
Adjusted operating income			593,809				300,514				293,296
GAAP income before income taxes		$	548,896			$	303,134			$	245,762
Amortization of intangible assets and other			4,300				1,541				2,759
Gain on legal settlement			(61,705	)			(61,705	)			-
Adjusted income before income taxes			491,491				242,970				248,521
GAAP income tax expense		$	120,749			$	59,248			$	61,501
Amortization of intangible assets and other			950				345				605
Gain on legal settlement			(14,539	)			(14,539	)			-
Income tax expense items, net			7,341				12,287				(4,946	)
Adjusted income tax expense			114,501				57,341				57,160
GAAP net income		$	428,147			$	243,886			$	184,261
Amortization of intangible assets and other (net of tax)			3,350				1,196				2,154
Gain on legal settlement (net of tax)			(47,166	)			(47,166	)			-
Income tax expense items, net			(7,341	)			(12,287	)			4,946
Adjusted net income			376,990				185,629				191,361
GAAP diluted earnings per share		$	4.55			$	2.63			$	1.93
Amortization of intangible assets and other (net of tax)			0.03				0.01				0.02
Gain on legal settlement (net of tax)			(0.50	)			(0.51	)			-
Income tax expense items, net			(0.08	)			(0.13	)			0.05
Adjusted diluted EPS			4.00				2.00				2.00
_______________
* May not foot/cross foot due to rounding.

						Quarters Ended
		Fiscal Year				July 2,				April 2,				January 1,				October 2,
		2022*				2022*				2022*				2022*				2021*
		($ in thousands, except per share amounts)
GAAP selling, general and administrative expenses		$	1,994,847			$	494,943			$	512,364			$	501,363			$	486,178
Amortization of intangible assets and other			(15,038	)			(2,929	)			(3,074	)			(3,796	)			(5,239	)
Adjusted operating expenses			1,979,809				492,014				509,290				497,567				480,939
GAAP operating income		$	939,011			$	284,688			$	274,408			$	211,672			$	168,243
Restructuring, integration and other expenses			5,272				-				-				-				5,272
Russian-Ukraine conflict related expenses			26,261				-				26,261				-				-
Amortization of intangible assets and other			15,038				2,929				3,074				3,796				5,239
Adjusted operating income			985,582				287,617				303,743				215,468				178,754
GAAP income before income taxes		$	833,334			$	248,541			$	248,025			$	191,779			$	144,990
Restructuring, integration and other expenses			5,272				-				-				-				5,272
Russian-Ukraine conflict related expenses			26,261				-				26,261				-				-
Amortization of intangible assets and other			15,038				2,929				3,074				3,796				5,239
Other expenses			4,935				4,494				-				-				441
Adjusted income before income taxes			884,840				255,964				277,360				195,575				155,942
GAAP income tax expense		$	140,955			$	1,718			$	64,608			$	40,958			$	33,672
Restructuring, integration and other expenses			1,012				-				-				-				1,012
Russian-Ukraine conflict related expenses			6,836				-				6,836				-				-
Amortization of intangible assets and other			3,080				711				667				704				998
Other expenses			1,092				956				-				-				136
Income tax benefit (expense) items, net			40,376				49,142				(8,613	)			2,917				(3,070	)
Adjusted income tax expense			193,351				52,527				63,498				44,579				32,748
GAAP net income		$	692,379			$	246,823			$	183,417			$	150,821			$	111,318
Restructuring, integration and other expenses (net of tax)			4,260				-				-				-				4,260
Russian-Ukraine conflict related expenses (net of tax)			19,425				-				19,425				-				-
Amortization of intangible assets and other (net of tax)			11,958				2,218				2,407				3,092				4,241
Other expenses (net of tax)			3,843				3,538				-				-				305
Income tax (benefit) expense items, net			(40,376	)			(49,142	)			8,613				(2,917	)			3,070
Adjusted net income			691,489				203,437				213,862				150,996				123,194
GAAP diluted earnings per share		$	6.94			$	2.51			$	1.84			$	1.50			$	1.10
Restructuring, integration and other expenses (net of tax)			0.04				-				-				-				0.04
Russian-Ukraine conflict related expenses (net of tax)			0.19				-				0.20				-				-
Amortization of intangible assets and other (net of tax)			0.12				0.02				0.02				0.03				0.04
Other expenses (net of tax)			0.04				0.04				-				-				0.00
Income tax (benefit) expense items, net			(0.40	)			(0.50	)			0.09				(0.03	)			0.03
Adjusted diluted EPS			6.93				2.07				2.15				1.51				1.22
_______________
* May not foot/cross foot due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year.

Sales in Constant Currency

The following table presents sales growth rates and sales growth rates in constant currency for the second quarter and first six months of fiscal 2023 compared to the second quarter and first six months of fiscal 2022.

		Quarter Ended												Six Months Ended
					Sales						Sales						Sales
					Year-Year %						Sequential %						Year-Year %
		Sales			Change in			Sales			Change in			Sales			Change in
		Year-Year			Constant			Sequential			Constant			Year-Year			Constant
		% Change			Currency			% Change			Currency			% Change			Currency
Avnet		14.5	%		21.1	%		(0.5	)%		(0.6	)%		17.6	%		24.9	%
Avnet by region
Americas		20.8	%		20.8	%		0.1	%		0.1	%		26.8	%		26.8	%
EMEA		22.6			37.6			5.9			4.8			22.2			39.9
Asia		5.6			9.3			(5.5	)		(5.0	)		9.8			13.4
Avnet by segment
EC		16.3	%		22.8	%		(0.2	)%		(0.3	)%		19.7	%		27.0	%
Farnell		(7.5	)		(0.1	)		(4.2	)		(3.7	)		(6.9	)		0.8

Historical Segment Financial Information

						Quarters Ended
		Fiscal				Second Quarter				First Quarter
		Year to Date				December 31,				October 1,
		2023*				2022				2022
		(in millions)
Sales:
Electronic Components		$	12,633.7			$	6,309.5			$	6,324.2
Farnell			833.9				408.0				425.9
Avnet sales		$	13,467.7			$	6,717.5			$	6,750.1
Operating income:
Electronic Components		$	564.0			$	296.7			$	267.3
Farnell			88.5				36.9				51.6
			652.5				333.6				318.9
Corporate expenses			(58.7	)			(33.1	)			(25.6	)
Amortization of acquired intangible assets and other			(4.3	)			(1.5	)			(2.8	)
Avnet operating income		$	589.5			$	299.0			$	290.5
Sales by geographic area:
Americas		$	3,360.1			$	1,681.2			$	1,678.9
EMEA			4,385.4				2,255.9				2,129.5
Asia			5,722.2				2,780.4				2,941.7
Avnet sales		$	13,467.7			$	6,717.5			$	6,750.1
_______________
* May not foot/cross foot due to rounding.

						Fiscal Year 2022
						Quarters Ended
						Fourth Quarter				Third Quarter				Second Quarter				First Quarter
		Fiscal Year				July 2,				April 2,				January 1,				October 2,
		2022*				2022*				2022				2022				2021
		(in millions)
Sales:
Electronic Components		$	22,503.3			$	5,930.4			$	6,019.1			$	5,424.3			$	5,129.5
Farnell			1,807.4				442.3				469.0				440.9				455.2
Avnet sales		$	24,310.7			$	6,372.7			$	6,488.1			$	5,865.2			$	5,584.7
Operating income:
Electronic Components		$	872.0			$	255.6			$	265.0			$	188.9			$	162.4
Farnell			242.5				62.9				69.8				60.2				49.6
			1,114.5				318.5				334.8				249.1				212.0
Corporate expenses			(128.9	)			(30.9	)			(31.1	)			(33.6	)			(33.3	)
Restructuring, integration and other expenses			(5.3	)			-				-				-				(5.3	)
Russian-Ukraine conflict related expenses			(26.3	)			-				(26.3	)			-				-
Amortization of acquired intangible assets and other			(15.0	)			(2.9	)			(3.1	)			(3.8	)			(5.2	)
Avnet operating income		$	939.0			$	284.7			$	274.4			$	211.7			$	168.2
Sales by geographic area:
Americas		$	5,896.0			$	1,618.4			$	1,627.2			$	1,391.5			$	1,258.8
EMEA			7,838.1				2,064.0				2,185.7				1,840.8				1,747.6
Asia			10,576.6				2,690.3				2,675.2				2,632.9				2,578.3
Avnet sales		$	24,310.7			$	6,372.7			$	6,488.1			$	5,865.2			$	5,584.7
_______________
* May not foot/cross foot due to rounding.

Guidance Reconciliation

There are no significant differences expected between the above adjusted diluted earnings per share guidance and GAAP diluted earnings per share guidance for the third quarter of fiscal 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005629/en/

Investor Relations Contacts

Joe Burke, 480-643-7431

Joseph.Burke@avnet.com

Media Relations Contact

Jeanne Forbis, 480-643-7499

Jeanne.Forbis@Avnet.com

Source: Avnet

FAQ

What were Avnet's Q2 2023 sales figures?

Avnet reported Q2 sales of $6.7 billion, up 14.5% year-over-year.

What is Avnet's diluted EPS for Q2 2023?

The diluted EPS for Q2 2023 was $2.63, a 75.3% increase from the previous year.

What is Avnet's sales guidance for Q3 FY2023?

Avnet projects Q3 sales between $6.15 billion and $6.45 billion.

How did Avnet's operating income perform in Q2 2023?

Avnet's operating income rose to $299 million, a 41.2% increase from the previous year.

What are the expected impacts on Avnet's sales in Q3 FY2023?

Sales are expected to decline by 4% to 8% sequentially due to seasonal factors.