PHOENIX – Electronic components distributor Avnet Inc . (NASDAQ:) reported fiscal first quarter results that exceeded analyst expectations, while providing mixed guidance for the current quarter.
Avnet posted adjusted earnings per share of $0.92 for the quarter ended September 28, 2024, beating the analyst consensus estimate of $0.86. Revenue came in at $5.6 billion, above the $5.43 billion analysts were expecting.
However, the company’s sales declined 11.6% YoY from $6.34 billion in the same quarter last year. Avnet attributed the revenue drop to “uneven market conditions” but noted a return to growth in its Asia region.
“Despite uneven market conditions, our team continues to operate effectively, and I want to thank them for their execution and for maintaining collaborative relationships with our customers and suppliers,” said Avnet CEO Phil Gallagher.
For the fiscal second quarter, Avnet expects revenue between $5.4 billion and $5.7 billion, with the midpoint of $5.55 billion in line with analyst estimates. However, the company’s EPS guidance of $0.80 to $0.90 falls short of the $1.02 consensus.
Avnet said it is focused on improving performance in its Farnell business, which saw operating income margin drop to just 0.5% in Q1 compared to 4.2% a year ago. The company generated $106 million in operating cash flow and returned nearly $100 million to shareholders through share repurchases during the quarter.
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