Avnet Reports Q1 Results Surpassing Expectations Despite Revenue Decline

PHOENIX - Electronic component distributor Avnet Inc. (NASDAQ:AVT) reported financial results for the first quarter that exceeded analyst expectations while providing a mixed outlook for the current quarter.
Avnet announced adjusted earnings of $0.92 per share for the quarter ending September 28, 2024, surpassing the analyst consensus estimate of $0.86. Revenue reached $5.6 billion, exceeding analysts' expectations of $5.43 billion.
However, the company's sales declined 11.6% year-over-year compared to $6.34 billion in the same quarter last year. Avnet attributed the revenue decline to "volatile market conditions" but noted a return to growth in the Asia region.
Avnet CEO Phil Gallagher stated, "Despite the volatile market conditions, our team continues to work effectively, and I want to thank them for their performance as we maintain collaborative relationships with our customers and suppliers."
For the fiscal second quarter, Avnet expects revenue between $5.4 billion and $5.7 billion, with the midpoint of $5.55 billion aligning with analyst estimates. However, the company's earnings per share forecast of $0.80 to $0.90 falls short of the consensus of $1.02.
Avnet indicated it is focused on improving the performance of the Farnell business. Farnell's operating income margin fell to 0.5% in Q1, compared to 4.2% last year. The company generated $106 million in operating cash flow during the quarter and returned approximately $100 million to shareholders through stock buybacks.