Avnet Inc

Latest Results (27.12.2024):

Sales Performance

In the first quarter of fiscal 2025, Avnet Inc. reported sales of $5.6 billion, a decrease from $6.3 billion in the same quarter of the previous year. This decline represents an 11.6% year-over-year reduction in sales. Despite the decrease, the company noted a return to growth in its Asia region, which contributed positively to the overall sales performance.

Earnings Per Share

Avnet Inc. announced a diluted earnings per share (EPS) of $0.66 for the first quarter of fiscal 2025, compared to $2.25 in the prior year quarter. The adjusted diluted EPS was $0.92, down from $1.61 in the previous year. This significant drop in EPS reflects the challenging market conditions the company faced during the quarter.

Operating Income and Margins

The company's operating income for the first quarter of fiscal 2025 was $142.2 million, a 44% decrease from $253.8 million in the same quarter last year. The operating income margin also declined to 2.5% from 4.0% in the prior year quarter. Adjusted operating income margin was reported at 3.0%, indicating a focus on maintaining profitability despite reduced sales.

Cash Flow and Shareholder Returns

Avnet Inc. generated $106 million in cash flow from operations during the first quarter of fiscal 2025. The company returned nearly $100 million to shareholders through share repurchases, representing 2.1% of shares outstanding. Additionally, $29 million was returned to shareholders in the form of dividends, highlighting Avnet's commitment to shareholder value.

Outlook for Second Quarter

Looking ahead, Avnet Inc. provided guidance for the second quarter of fiscal 2025, with expected sales in the range of $5.40 billion to $5.70 billion. The midpoint of this range suggests a slight sequential increase in sales. The company also projected diluted EPS to be between $0.80 and $0.90, indicating a potential improvement in earnings performance in the upcoming quarter.