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     129  0 Kommentare Avnet Reports Second Quarter 2024 Financial Results

    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

     

     


    The Avnet Stock at the time of publication of the news with a raise of +0,45 % to 44,20EUR on Tradegate stock exchange (30. Januar 2024, 22:26 Uhr).


    Business Wire (engl.)
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    Avnet Reports Second Quarter 2024 Financial Results 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, …