Avnet Inc (AVT) Reports Q1 2024 Financial Results with $6.3 Billion Sales and $2.25 EPS
Avnet Inc (NASDAQ:AVT) reports Q1 2024 sales of $6.3 billion and diluted EPS of $2.25
Adjusted diluted EPS of $1.61 exceeded guidance
Electronic Components operating margin increased by 38 basis points year over year
Company's outlook for Q2 2024 indicates a sequential sales decline of 1% to 5%
On November 1, 2023, Avnet Inc (NASDAQ:AVT) announced its financial results for the first quarter ended September 30, 2023. The company reported better-than-expected results, largely due to the strong performance of its Electronic Components business.
Financial Highlights
Avnet Inc (NASDAQ:AVT) reported first-quarter sales of $6.3 billion, a decrease of 6.1% year over year. The operating income was $253.8 million, down by 12.7% from the same period last year. The company's diluted earnings per share (EPS) stood at $2.25, marking a 16.6% increase year over year.
On a non-GAAP basis, the adjusted operating income was $261.7 million, down by 10.8% year over year. The adjusted diluted EPS was $1.61, a decrease of 19.5% from the same period last year.
Segment and Geographical Mix
The Electronic Components (EC) Sales were $5.9 billion, a decrease of 6.5% year over year. The EC Operating Income Margin increased by 38 basis points to 4.6%. Sales in the Americas decreased by 6.3% to $1.57 billion, while EMEA sales increased by 8.4% to $2.3 billion. Asia sales decreased by 16.6% to $2.45 billion.
Outlook for Q2 2024
For the second quarter of fiscal 2024 ending on December 30, 2023, Avnet Inc (NASDAQ:AVT) expects sales to be between $6.00 billion and $6.30 billion, and adjusted diluted EPS to be between $1.35 and $1.45.
CEO's Commentary
Avnet Chief Executive Officer Phil Gallagher commented on the results, stating,
We delivered better-than-expected results in the first quarter thanks to the strong performance of our Electronic Components business. Our teams continued execution and flexibility are resonating with both our customer and supplier partners, especially in todays market conditions. We remain focused on the things we can control, and are confident that our resiliency and adaptability will keep us on our path to driving profitable growth and value for all of our stakeholders in the long term."
Financial Statements Summary
The company's consolidated statements of operations showed a net income of $209.3 million for the quarter ended September 30, 2023. The balance sheet indicated total assets of $12.6 billion as of September 30, 2023. The cash flow statement showed a net cash flow used for operating activities of $41.3 million for the quarter ended September 30, 2023.
Avnet Inc (NASDAQ:AVT) is a leading global technology distributor and solutions provider that has served customers evolving needs for more than a century.
Explore the complete 8-K earnings release (here) from Avnet Inc for further details.
This article first appeared on GuruFocus.
