AVT Avnet Inc

Third quarter sales of $5.7 billion and diluted EPS of $0.97

Adjusted diluted EPS of $1.10

Electronic Components operating margin of 4.1%

Avnet, Inc. (Nasdaq: AVT) today announced results for its third quarter ended March 30, 2024.

“In the third quarter, we delivered results that were in line with our expectations, amidst economic softness and lower demand in the markets we serve. I am proud of our team’s effort to deliver robust cash flow from operations as the benefits from our countercyclical balance sheet started to take effect this quarter,” said Avnet Chief Executive Officer Phil Gallagher. “Our fourth quarter outlook reflects a continuation of these market conditions. Looking ahead, our team remains focused on the things we can control – bringing value to our customer and supplier partners, reducing operating costs, improving our working capital, generating cash flows and driving shareholder return.”

Fiscal Third Quarter Key Financial Highlights:

• Sales of $5.7 billion, compared with $6.5 billion in the prior year quarter.
• Diluted earnings per share of $0.97, compared with $2.03 in the prior year quarter.
  • Adjusted diluted earnings per share of $1.10, compared with $2.00 in the prior year quarter.
• Operating income margin of 3.4%, compared with 4.8% in the prior year quarter.
  • Adjusted operating income margin of 3.6%.
  • Electronic Components operating income margin of 4.1%.
  • Farnell operating income margin of 4.0%.
• Generated nearly $500 million of cash flow from operations.
  • Trailing twelve month cash flows from operations of $650 million.
• Returned $28 million to shareholders in dividends during the quarter.

Key Financial Metrics

($ in millions, except per share data)

 

Third Quarter Results (GAAP)

 

 

Mar – 24

 

Mar – 23

 

Change Y/Y

 

Dec – 23

 

Change Q/Q

Sales

 

$

5,653.6

 

 

$

6,514.6

 

 

(13.2)

%

 

$

6,204.9

 

 

(8.9)

%

Operating Income

 

$

190.2

 

 

$

313.6

 

 

(39.4)

%

 

$

236.3

 

 

(19.5)

%

Operating Income Margin

 

 

3.4

%

 

 

4.8

%

 

(145)

bps

 

 

3.8

%

 

(45)

bps

Diluted Earnings Per Share (EPS)

 

$

0.97

 

 

$

2.03

 

 

(52.2)

%

 

$

1.28

 

 

(24.2)

%

Third Quarter Results (Non-GAAP)(1)

 

 

Mar – 24

 

Mar – 23

 

Change Y/Y

 

Dec – 23

 

Change Q/Q

Adjusted Operating Income

 

$

202.7

 

 

$

314.5

 

 

(35.6)

%

 

$

242.2

 

 

(16.3)

%

Adjusted Operating Income Margin

 

 

3.6

%

 

 

4.8

%

 

(124)

bps

 

 

3.9

%

 

(31)

bps

Adjusted Diluted Earnings Per Share (EPS)

 

$

1.10

 

 

$

2.00

 

 

(45.0)

%

 

$

1.40

 

 

(21.4)

%

Segment and Geographical Mix

 

 

Mar – 24

 

Mar – 23

 

Change Y/Y

 

Dec – 23

 

Change Q/Q

Electronic Components (EC) Sales

 

$

5,245.8

 

 

$

6,059.6

 

 

(13.4)

%

 

$

5,812.1

 

 

(9.7)

%

EC Operating Income Margin

 

 

4.1

%

 

 

5.0

%

 

(91)

bps

 

 

4.3

%

 

(14)

bps

Farnell Sales

 

$

407.8

 

 

$

455.0

 

 

(10.4)

%

 

$

392.8

 

 

3.8

%

Farnell Operating Income Margin

 

 

4.0

%

 

 

9.0

%

 

(499)

bps

 

 

4.0

%

 

0

bps

Americas Sales

 

$

1,403.4

 

 

$

1,714.9

 

 

(18.2)

%

 

$

1,588.5

 

 

(11.7)

%

EMEA Sales

 

$

2,053.1

 

 

$

2,393.4

 

 

(14.2)

%

 

$

2,113.6

 

 

(2.9)

%

Asia Sales

 

$

2,197.1

 

 

$

2,406.3

 

 

(8.7)

%

 

$

2,502.8

 

 

(12.2)

%

(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 Fourth Quarter of Fiscal 2024 Ending on June 29, 2024

 

 

 

Guidance Range

 

Midpoint

Sales

 

$5.20B – $5.50B

 

$5.35B

Diluted EPS (1)

 

$0.90 – $1.00

 

$0.95

(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 3% to 8% and assumes below seasonal changes in sales across all regions.

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 third 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:

 

 

Q4 Fiscal

 

 

 

 

 

 

2024

 

Q3 Fiscal

 

Q4 Fiscal

 

 

Guidance

 

2024

 

2023

Euro to U.S. Dollar

 

$1.07

 

$1.09

 

$1.09

GBP to U.S. Dollar

 

$1.24

 

$1.27

 

$1.25

Today’s Conference Call and Webcast Details

Avnet will host a conference call and webcast today at 9:00 a.m. PT / Noon 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 May 8, 2024: 877-660-6853 or 201-612-7415 and using Conference ID: 13745576
• 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)

 

 

 

Third Quarters Ended

 

Nine Months Ended

 

 

March 30,

 

April 1,

 

March 30,

 

April 1,

 

 

2024

 

2023

 

2024

 

2023

 

 

(Thousands, except per share data)

Sales

 

$

5,653,591

 

 

$

6,514,619

 

 

$

18,194,153

 

 

$

19,982,273

 

Cost of sales

 

 

4,984,318

 

 

 

5,702,771

 

 

 

16,070,591

 

 

 

17,618,151

 

Gross profit

 

 

669,273

 

 

 

811,848

 

 

 

2,123,562

 

 

 

2,364,122

 

Selling, general and administrative expenses

 

 

467,275

 

 

 

498,219

 

 

 

1,419,253

 

 

 

1,460,984

 

Restructuring, integration and other expenses

 

 

11,847

 

 

 

—

 

 

 

24,132

 

 

 

—

 

Operating income

 

 

190,151

 

 

 

313,629

 

 

 

680,177

 

 

 

903,138

 

Other (expense) income, net

 

 

(14,707

)

 

 

1,653

 

 

 

(17,144

)

 

 

3,452

 

Interest and other financing expenses, net

 

 

(73,496

)

 

 

(71,695

)

 

 

(218,593

)

 

 

(175,813

)

Gain on legal settlements and other

 

 

—

 

 

 

—

 

 

 

86,499

 

 

 

61,705

 

Income before taxes

 

 

101,948

 

 

 

243,587

 

 

 

530,939

 

 

 

792,482

 

Income tax expense

 

 

13,114

 

 

 

56,161

 

 

 

114,906

 

 

 

176,910

 

Net income

 

$

88,834

 

 

$

187,426

 

 

$

416,033

 

 

$

615,572

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.98

 

 

$

2.05

 

 

$

4.59

 

 

$

6.67

 

Diluted

 

$

0.97

 

 

$

2.03

 

 

$

4.52

 

 

$

6.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

90,430

 

 

 

91,436

 

 

 

90,726

 

 

 

92,226

 

Diluted

 

 

91,256

 

 

 

92,456

 

 

 

92,075

 

 

 

93,616

 

Cash dividends paid per common share

 

$

0.31

 

 

$

0.29

 

 

$

0.93

 

 

$

0.87

 

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

March 30,

 

July 1,

 

 

2024

 

2023

 

 

(Thousands)

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

218,473

 

$

288,230

Receivables

 

 

4,315,063

 

 

4,763,788

Inventories

 

 

5,751,872

 

 

5,465,031

Prepaid and other current assets

 

 

200,428

 

 

233,804

Total current assets

 

 

10,485,836

 

 

10,750,853

Property, plant and equipment, net

 

 

561,560

 

 

441,557

Goodwill

 

 

780,506

 

 

780,629

Operating lease assets

 

 

219,572

 

 

221,698

Other assets

 

 

277,763

 

 

282,422

Total assets

 

$

12,325,237

 

$

12,477,159

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

$

548,519

 

$

70,636

Accounts payable

 

 

3,324,043

 

 

3,373,820

Accrued expenses and other

 

 

565,047

 

 

753,130

Short-term operating lease liabilities

 

 

55,063

 

 

51,792

Total current liabilities

 

 

4,492,672

 

 

4,249,378

Long-term debt

 

 

2,406,421

 

 

2,988,029

Long-term operating lease liabilities

 

 

183,427

 

 

190,621

Other liabilities

 

 

253,620

 

 

297,462

Total liabilities

 

 

7,336,140

 

 

7,725,490

Shareholders’ equity

 

 

4,989,097

 

 

4,751,669

Total liabilities and shareholders’ equity

 

$

12,325,237

 

$

12,477,159

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine Months Ended

 

 

March 30, 2024

 

April 1, 2023

 

 

(Thousands)

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

416,033

 

 

$

615,572

 

 

 

 

 

 

 

 

Non-cash and other reconciling items:

 

 

 

 

 

 

Depreciation and amortization

 

 

64,151

 

 

 

65,039

 

Amortization of operating lease assets

 

 

40,181

 

 

 

39,962

 

Deferred income taxes

 

 

12,895

 

 

 

(11,053

)

Stock-based compensation

 

 

27,150

 

 

 

30,057

 

Other, net

 

 

7,932

 

 

 

7,986

 

Changes in (net of effects from businesses acquired and divested):

 

 

 

 

 

 

Receivables

 

 

424,437

 

 

 

(320,097

)

Inventories

 

 

(311,104

)

 

 

(1,033,381

)

Accounts payable

 

 

(23,247

)

 

 

(331,352

)

Accrued expenses and other, net

 

 

(242,698

)

 

 

(10,974

)

Net cash flows provided by (used for) operating activities

 

 

415,730

 

 

 

(948,241

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Issuance of notes, net of discounts

 

 

—

 

 

 

498,615

 

Borrowings (repayments) under accounts receivable securitization, net

 

 

(80,100

)

 

 

261,000

 

Borrowings under senior unsecured credit facility, net

 

 

(49,057

)

 

 

763,991

 

Borrowings (repayments) under bank credit facilities and other debt, net

 

 

22,884

 

 

 

(90,256

)

Repurchases of common stock

 

 

(86,027

)

 

 

(221,282

)

Dividends paid on common stock

 

 

(84,154

)

 

 

(79,807

)

Other, net

 

 

(8,033

)

 

 

(9,814

)

Net cash flows (used for) provided by financing activities

 

 

(284,487

)

 

 

1,122,447

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(200,210

)

 

 

(137,804

)

Other, net

 

 

629

 

 

 

(16,326

)

Net cash flows used for investing activities

 

 

(199,581

)

 

 

(154,130

)

 

 

 

 

 

 

 

Effect of currency exchange rate changes on cash and cash equivalents

 

 

(1,419

)

 

 

12,168

 

Cash and cash equivalents:

 

 

 

 

 

 

— (decrease) increase

 

 

(69,757

)

 

 

32,244

 

— at beginning of period

 

 

288,230

 

 

 

153,693

 

— at end of period

 

$

218,473

 

 

$

185,937

 

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 other income (expense), (iii) adjusted income before income taxes, (iv) adjusted income tax expense (benefit), and (v) 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 adjusted for restructuring, integration and other expenses, and amortization of acquired intangible assets, is a useful measure 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 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.

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.

Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income divided by sales and the adjusted effective income tax rate, which is defined as adjusted income tax expense divided by adjusted income before income taxes.

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

 

March 30,

 

December 30,

 

September 30,

 

 

2024*

 

2024*

 

2023

 

2023

 

 

($ in thousands, except per share amounts)

GAAP operating income

 

$

680,177

 

 

$

190,151

 

 

$

236,257

 

 

$

253,769

 

Restructuring, integration and other expenses

 

 

24,132

 

 

 

11,847

 

 

 

5,235

 

 

 

7,051

 

Amortization of intangible assets

 

 

2,301

 

 

 

712

 

 

 

712

 

 

 

878

 

Adjusted operating income

 

 

706,610

 

 

 

202,710

 

 

 

242,204

 

 

 

261,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other (expense) income, net

 

$

(17,144

)

 

$

(14,707

)

 

$

(8,397

)

 

$

5,960

 

Foreign currency loss (gain) and other, net

 

 

27,050

 

 

 

17,850

 

 

 

9,200

 

 

 

—

 

Adjusted other (expense) income, net

 

 

9,906

 

 

 

3,143

 

 

 

803

 

 

 

5,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

530,939

 

 

$

101,948

 

 

$

153,558

 

 

$

275,432

 

Restructuring, integration and other expenses

 

 

24,132

 

 

 

11,847

 

 

 

5,235

 

 

 

7,051

 

Amortization of intangible assets

 

 

2,301

 

 

 

712

 

 

 

712

 

 

 

878

 

Foreign currency loss (gain) and other, net

 

 

27,050

 

 

 

17,850

 

 

 

9,200

 

 

 

—

 

Gain on legal settlements and other

 

 

(86,499

)

 

 

—

 

 

 

—

 

 

 

(86,499

)

Adjusted income before income taxes

 

 

497,923

 

 

 

132,357

 

 

 

168,705

 

 

 

196,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense

 

$

114,906

 

 

$

13,114

 

 

$

35,627

 

 

$

66,164

 

Restructuring, integration and other expenses

 

 

5,749

 

 

 

2,772

 

 

 

1,274

 

 

 

1,703

 

Amortization of intangible assets

 

 

515

 

 

 

156

 

 

 

156

 

 

 

203

 

Foreign currency loss (gain) and other, net

 

 

7,285

 

 

 

5,251

 

 

 

2,034

 

 

 

—

 

Gain on legal settlements and other

 

 

(20,434

)

 

 

—

 

 

 

—

 

 

 

(20,434

)

Income tax expense items, net

 

 

11,481

 

 

 

10,472

 

 

 

1,399

 

 

 

(390

)

Adjusted income tax expense

 

 

119,502

 

 

 

31,765

 

 

 

40,490

 

 

 

47,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

416,033

 

 

$

88,834

 

 

$

117,931

 

 

$

209,268

 

Restructuring, integration and other expenses (net of tax)

 

18,383

 

 

 

9,075

 

 

 

3,961

 

 

 

5,348

 

Amortization of intangible assets (net of tax)

 

 

1,786

 

 

 

556

 

 

 

556

 

 

 

675

 

Foreign currency loss (gain) and other, net (net of tax)

 

 

19,765

 

 

 

12,599

 

 

 

7,166

 

 

 

—

 

Gain on legal settlements and other (net of tax)

 

 

(66,065

)

 

 

—

 

 

 

—

 

 

 

(66,065

)

Income tax expense items, net

 

 

(11,481

)

 

 

(10,472

)

 

 

(1,399

)

 

 

390

 

Adjusted net income

 

 

378,421

 

 

 

100,592

 

 

 

128,215

 

 

 

149,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

4.52

 

 

$

0.97

 

 

$

1.28

 

 

$

2.25

 

Restructuring, integration and other expenses (net of tax)

 

0.20

 

 

 

0.10

 

 

 

0.04

 

 

 

0.06

 

Amortization of intangible assets (net of tax)

 

 

0.02

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

Foreign currency loss (gain) and other, net (net of tax)

 

 

0.21

 

 

 

0.14

 

 

 

0.08

 

 

 

—

 

Gain on legal settlements and other (net of tax)

 

 

(0.72

)

 

 

—

 

 

 

—

 

 

 

(0.71

)

Income tax expense items, net

 

 

(0.12

)

 

 

(0.11

)

 

 

(0.01

)

 

 

0.00

 

Adjusted diluted EPS

 

 

4.11

 

 

 

1.10

 

 

 

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 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 third quarter and first nine months of fiscal 2024 compared to the third quarter and first nine months of fiscal 2023.

 

 

Quarter Ended

 

Nine Months Ended

 

 

March 30, 2024

 

March 30, 2024

 

 

 

 

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

 

(13.2

)

%

 

(13.0

)

%

 

(8.9

)

%

 

(9.3

)

%

 

(9.0

)

%

 

(9.8

)

%

Avnet by region

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

(18.2

)

%

 

(18.2

)

%

 

(11.7

)

%

 

(11.7

)

%

 

(10.0

)

%

 

(10.0

)

%

EMEA

 

(14.2

)

 

 

(15.1

)

 

 

(2.9

)

 

 

(3.9

)

 

 

(4.5

)

 

 

(8.1

)

 

Asia

 

(8.7

)

 

 

(7.2

)

 

 

(12.2

)

 

 

(12.2

)

 

 

(12.0

)

 

 

(11.0

)

 

Avnet by segment

 

 

 

 

 

 

 

 

 

 

 

 

EC

 

(13.4

)

%

 

(13.1

)

%

 

(9.7

)

%

 

(10.1

)

%

 

(9.2

)

%

 

(10.0

)

%

Farnell

 

(10.4

)

 

 

(11.2

)

 

 

3.8

 

 

 

2.9

 

 

 

(5.2

)

 

 

(7.2

)

 

Historical Segment Financial Information

 

 

 

 

 

Quarters Ended

 

 

Fiscal

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

Year to Date

 

March 30,

 

December 30,

 

September 30,

 

 

2024*

 

2024

 

2023

 

2023

 

 

($ in millions)

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

16,972.3

 

 

$

5,245.8

 

 

$

5,812.1

 

 

$

5,914.4

 

Farnell

 

 

1,221.9

 

 

 

407.8

 

 

 

392.8

 

 

 

421.2

 

Avnet sales

 

$

18,194.2

 

 

$

5,653.6

 

 

$

6,204.9

 

 

$

6,335.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

737.5

 

 

$

216.9

 

 

$

247.9

 

 

$

272.8

 

Farnell

 

 

49.7

 

 

 

16.3

 

 

 

15.7

 

 

 

17.7

 

 

 

 

787.2

 

 

 

233.2

 

 

 

263.6

 

 

 

290.5

 

Corporate expenses

 

 

(80.6

)

 

 

(30.5

)

 

 

(21.4

)

 

 

(28.7

)

Restructuring, integration and other expenses

 

 

(24.1

)

 

 

(11.8

)

 

 

(5.2

)

 

 

(7.1

)

Amortization of acquired intangible assets

 

 

(2.3

)

 

 

(0.7

)

 

 

(0.7

)

 

 

(0.9

)

Avnet operating income

 

$

680.2

 

 

$

190.2

 

 

$

236.3

 

 

$

253.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

4,565.4

 

 

$

1,403.4

 

 

$

1,588.5

 

 

$

1,573.5

 

EMEA

 

 

6,474.7

 

 

 

2,053.1

 

 

 

2,113.6

 

 

 

2,308.0

 

Asia

 

 

7,154.1

 

 

 

2,197.1

 

 

 

2,502.8

 

 

 

2,454.1

 

Avnet sales

 

$

18,194.2

 

 

$

5,653.6

 

 

$

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 fourth quarter of fiscal 2024.

 

 

Low End of

 

High End of

 

 

Guidance Range

 

Guidance Range

 

 

 

 

 

 

 

Adjusted diluted earnings per share guidance

 

$

0.90

 

 

$

1.00

 

Restructuring, integration and other expenses (net of tax)

 

 

(0.10

)

 

 

(0.15

)

GAAP diluted earnings per share guidance

 

$

0.80

 

 

$

0.85

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240501253431/en/

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