Avnet Reports Fourth Quarter and Fiscal 2024 Financial Results

Fourth quarter sales of $5.6 billion and diluted EPS of $0.91

Adjusted diluted EPS of $1.22

Electronic Components operating margin of 4.1%

Avnet, Inc. (Nasdaq: AVT) today announced results for its fourth quarter and fiscal year 2024 ended June 29, 2024.

“We are pleased with our fiscal 2024 performance as we executed well, despite some challenging market conditions,” said Avnet Chief Executive Officer Phil Gallagher. “I want to thank our team for their focus on supporting our supplier and customer partners, growing market share, controlling costs, and managing working capital to drive operating cash flow. Their efforts enabled us to exceed the upper end of our fourth quarter sales and earnings guidance. We are well positioned entering into fiscal year 2025 and I am confident we have the right team and strategy in place to benefit from the eventual market recovery.”

Fiscal Fourth Quarter Key Financial Highlights:

  • Sales of $5.6 billion, compared with $6.6 billion in the prior year quarter.
  • Diluted earnings per share of $0.91, compared with $1.68 in the prior year quarter.
    • Adjusted diluted earnings per share of $1.22, compared with $2.06 in the prior year quarter.
  • Operating income margin of 3.0%, compared with 4.3% in the prior year quarter.
    • Adjusted operating income margin of 3.5%.
    • Electronic Components operating income margin of 4.1%.
    • Farnell operating income margin of 4.0%.
  • Generated $274 million of cash flow from operations.
  • Returned $79 million to shareholders from share repurchases, representing 1.6% of shares outstanding.
  • Returned $28 million to shareholders in dividends.

Fiscal 2024 Key Financial Highlights:

  • Sales of $23.8 billion, compared with $26.5 billion in the prior year.
  • Diluted earnings per share of $5.43, compared with $8.26 in the prior year.
    • Adjusted diluted earnings per share of $5.34, compared with $8.06 in the prior year.
  • Operating income margin of 3.6%, compared with 4.5% in the prior year.
    • Adjusted operating income margin of 3.8%.
    • Electronic Components operating income margin of 4.3%.
    • Farnell operating income margin of 4.1%.
  • Generated $690 million of cash flow from operations.
  • Returned $165 million to shareholders from share repurchases, representing 3.6% of shares outstanding.
  • Returned $112 million to shareholders in dividends.

Key Financial Metrics

($ in millions, except per share data)

 

Fourth Quarter Results (GAAP)

 

 

Jun – 24

 

Jun – 23

 

Change Y/Y

 

Mar – 24

 

Change Q/Q

Sales

 

$

5,563.0

 

 

$

6,554.6

 

 

(15.1)

%

 

$

5,653.6

 

 

(1.6)

%

Operating Income

 

$

164.2

 

 

$

283.7

 

 

(42.1)

%

 

$

190.2

 

 

(13.7)

%

Operating Income Margin

 

 

3.0

%

 

 

4.3

%

 

(138)

bps

 

 

3.4

%

 

(41)

bps

Diluted Earnings Per Share (EPS)

 

$

0.91

 

 

$

1.68

 

 

(45.8)

%

 

$

0.97

 

 

(6.2)

%

Fourth Quarter Results (Non-GAAP)(1)

 

 

Jun – 24

 

Jun – 23

 

Change Y/Y

 

Mar – 24

 

Change Q/Q

Adjusted Operating Income

 

$

193.4

 

 

$

312.6

 

 

(38.1)

%

 

$

202.7

 

 

(4.6)

%

Adjusted Operating Income Margin

 

 

3.5

%

 

 

4.8

%

 

(129)

bps

 

 

3.6

%

 

(11)

bps

Adjusted Diluted Earnings Per Share (EPS)

 

$

1.22

 

 

$

2.06

 

 

(40.8)

%

 

$

1.10

 

 

10.9

%

Segment and Geographical Mix

 

 

Jun – 24

 

Jun – 23

 

Change Y/Y

 

Mar – 24

 

Change Q/Q

Electronic Components (EC) Sales

 

$

5,187.8

 

 

$

6,109.2

 

 

(15.1)

%

 

$

5,245.8

 

 

(1.1)

%

EC Operating Income Margin

 

 

4.1

%

 

 

5.1

%

 

(103)

bps

 

 

4.1

%

 

(8)

bps

Farnell Sales

 

$

375.2

 

 

$

445.4

 

 

(15.8)

%

 

$

407.8

 

 

(8.0)

%

Farnell Operating Income Margin

 

 

4.0

%

 

 

8.1

%

 

(406)

bps

 

 

4.0

%

 

3

bps

Americas Sales

 

$

1,353.8

 

 

$

1,732.7

 

 

(21.9)

%

 

$

1,403.4

 

 

(3.5)

%

EMEA Sales

 

$

1,920.3

 

 

$

2,450.6

 

 

(21.6)

%

 

$

2,053.1

 

 

(6.5)

%

Asia Sales

 

$

2,288.9

 

 

$

2,371.3

 

 

(3.5)

%

 

$

2,197.1

 

 

4.2

%

_______________

(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 First Quarter of Fiscal 2025 Ending on September 28, 2024

 

 

Guidance Range

 

Midpoint

Sales

 

$5.25B – $5.55B

 

$5.40B

Diluted EPS (1)

 

$0.80 – $0.90

 

$0.85

_______________

(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 change of flat to down approximately 5% and assumes sales declines in the western regions and sales growth in Asia.

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 fourth quarter of fiscal 2024 and an effective tax rate of between 21% and 25%. The above guidance assumes 90 million average diluted shares outstanding and average currency exchange rates as shown in the table below:

 

 

Q1 Fiscal

 

 

 

 

 

 

2025

 

Q4 Fiscal

 

Q1 Fiscal

 

 

Guidance

 

2024

 

2024

Euro to U.S. Dollar

 

$1.08

 

$1.08

 

$1.09

GBP to U.S. Dollar

 

$1.27

 

$1.26

 

$1.27

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 August 15, 2024: 877-660-6853 or 201-612-7415 and using Conference ID: 13747493
  • 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. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarters Ended

 

Years Ended

 

 

June 29,

 

July 1,

 

June 29,

 

July 1,

 

 

2024

 

2023

 

2024

 

2023

 

 

(Thousands, except per share data)

Sales

 

$

5,562,977

 

 

$

6,554,608

 

 

$

23,757,129

 

 

$

26,536,881

 

Cost of sales

 

 

4,920,097

 

 

 

5,736,586

 

 

 

20,990,687

 

 

 

23,354,738

 

Gross profit

 

 

642,880

 

 

 

818,022

 

 

 

2,766,442

 

 

 

3,182,143

 

Selling, general and administrative expenses

 

 

450,274

 

 

 

506,322

 

 

 

1,869,525

 

 

 

1,967,305

 

Restructuring, integration, and other expenses

 

 

28,417

 

 

 

28,038

 

 

 

52,550

 

 

 

28,038

 

Operating income

 

 

164,189

 

 

 

283,662

 

 

 

844,367

 

 

 

1,186,800

 

Other income (expense), net

 

 

1,409

 

 

 

6,456

 

 

 

(15,736

)

 

 

9,908

 

Interest and other financing expenses, net

 

 

(64,274

)

 

 

(75,056

)

 

 

(282,867

)

 

 

(250,869

)

Gain on legal settlements and other

 

 

 

 

 

(24,669

)

 

 

86,499

 

 

 

37,037

 

Income before taxes

 

 

101,324

 

 

 

190,393

 

 

 

632,263

 

 

 

982,876

 

Income tax expense

 

 

18,659

 

 

 

35,138

 

 

 

133,564

 

 

 

212,048

 

Net income

 

$

82,665

 

 

$

155,255

 

 

$

498,699

 

 

$

770,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.92

 

 

$

1.70

 

 

$

5.51

 

 

$

8.37

 

Diluted

 

$

0.91

 

 

$

1.68

 

 

$

5.43

 

 

$

8.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

90,092

 

 

 

91,493

 

 

 

90,567

 

 

 

92,043

 

Diluted

 

 

91,122

 

 

 

92,626

 

 

 

91,837

 

 

 

93,368

 

Cash dividends paid per common share

 

$

0.31

 

 

$

0.29

 

 

$

1.24

 

 

$

1.16

 

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

June 29,

 

July 1,

 

 

2024

 

2023

 

 

(Thousands)

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

310,941

 

$

288,230

Receivables

 

 

4,391,187

 

 

 

4,763,788

 

Inventories

 

 

5,468,730

 

 

 

5,465,031

 

Prepaid and other current assets

 

 

199,694

 

 

 

233,804

 

Total current assets

 

 

10,370,552

 

 

 

10,750,853

 

Property, plant and equipment, net

 

 

568,169

 

 

 

441,557

 

Goodwill

 

 

780,984

 

 

 

780,629

 

Operating lease assets

 

 

208,971

 

 

 

221,698

 

Other assets

 

 

280,471

 

 

 

282,422

 

Total assets

 

$

12,209,147

 

 

$

12,477,159

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

$

492,711

 

 

$

70,636

 

Accounts payable

 

 

3,345,510

 

 

 

3,373,820

 

Accrued expenses and other

 

 

573,055

 

 

 

753,130

 

Short-term operating lease liabilities

 

 

53,993

 

 

 

51,792

 

Total current liabilities

 

 

4,465,269

 

 

 

4,249,378

 

Long-term debt

 

 

2,406,629

 

 

 

2,988,029

 

Long-term operating lease liabilities

 

 

173,886

 

 

 

190,621

 

Other liabilities

 

 

237,859

 

 

 

297,462

 

Total liabilities

 

 

7,283,643

 

 

 

7,725,490

 

Shareholders’ equity

 

 

4,925,504

 

 

 

4,751,669

 

Total liabilities and shareholders’ equity

 

$

12,209,147

 

 

$

12,477,159

 

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

Years Ended

 

 

June 29, 2024

 

July 1, 2023

 

 

(Thousands)

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

498,699

 

 

$

770,828

 

 

 

 

 

 

 

 

Non-cash and other reconciling items:

 

 

 

 

 

 

Depreciation and amortization

 

 

86,708

 

 

 

88,613

 

Amortization of operating lease assets

 

 

53,796

 

 

 

54,392

 

Deferred income taxes

 

 

(9,749

)

 

 

(37,060

)

Stock-based compensation

 

 

33,496

 

 

 

38,781

 

Other, net

 

 

15,800

 

 

 

52,142

 

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

 

 

 

 

 

 

Receivables

 

 

316,218

 

 

 

(461,117

)

Inventories

 

 

(51,203

)

 

 

(1,173,124

)

Accounts payable

 

 

4,496

 

 

 

(75,943

)

Accrued expenses and other, net

 

 

(258,277

)

 

 

28,785

 

Net cash flows provided by (used for) operating activities

 

 

689,984

 

 

 

(713,703

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Issuance of notes, net of discounts

 

 

 

 

 

498,615

 

Borrowings (repayments) under accounts receivable securitization, net

 

 

(140,700

)

 

 

258,000

 

Borrowings under senior unsecured credit facility, net

 

 

(43,277

)

 

 

728,182

 

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

 

 

27,491

 

 

 

(96,209

)

Repurchases of common stock

 

 

(162,723

)

 

 

(221,730

)

Dividends paid on common stock

 

 

(111,963

)

 

 

(106,325

)

Other, net

 

 

(2,627

)

 

 

(5,777

)

Net cash flows (used for) provided by financing activities

 

 

(433,799

)

 

 

1,054,756

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(226,478

)

 

 

(194,674

)

Other, net

 

 

994

 

 

 

(16,877

)

Net cash flows used for investing activities

 

 

(225,484

)

 

 

(211,551

)

 

 

 

 

 

 

 

Effect of currency exchange rate changes on cash and cash equivalents

 

 

(7,990

)

 

 

5,035

 

Cash and cash equivalents:

 

 

 

 

 

 

— increase

 

 

22,711

 

 

 

134,537

 

— at beginning of period

 

 

288,230

 

 

 

153,693

 

— at end of period

 

$

310,941

 

 

$

288,230

 

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.

 

 

 

 

Quarters Ended

 

 

Fiscal Year

 

June 29,

 

March 30,

 

December 30,

 

September 30,

 

 

2024*

 

2024*

 

2024*

 

2023

 

2023

 

 

($ in thousands, except per share amounts)

GAAP operating income

 

$

844,367

 

 

$

164,189

 

 

$

190,151

 

 

$

236,257

 

 

$

253,769

 

Restructuring, integration, and other expenses

 

 

52,550

 

 

 

28,417

 

 

 

11,847

 

 

 

5,235

 

 

 

7,051

 

Amortization of intangible assets

 

 

3,130

 

 

 

828

 

 

 

712

 

 

 

712

 

 

 

878

 

Adjusted operating income

 

 

900,047

 

 

 

193,434

 

 

 

202,710

 

 

 

242,204

 

 

 

261,698

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other (expense) income, net

 

$

(15,736

)

 

$

1,409

 

 

$

(14,707

)

 

$

(8,397

)

 

$

5,960

 

Foreign currency loss (gain) and other, net

 

 

27,730

 

 

 

680

 

 

 

17,850

 

 

 

9,200

 

 

 

 

Adjusted other (expense) income, net

 

 

11,994

 

 

 

2,089

 

 

 

3,143

 

 

 

803

 

 

 

5,960

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

632,263

 

 

$

101,324

 

 

$

101,948

 

 

$

153,558

 

 

$

275,432

 

Restructuring, integration, and other expenses

 

 

52,550

 

 

 

28,417

 

 

 

11,847

 

 

 

5,235

 

 

 

7,051

 

Amortization of intangible assets

 

 

3,130

 

 

 

828

 

 

 

712

 

 

 

712

 

 

 

878

 

Foreign currency loss (gain) and other, net

 

 

27,730

 

 

 

680

 

 

 

17,850

 

 

 

9,200

 

 

 

 

Gain on legal settlements and other

 

 

(86,499

)

 

 

 

 

 

 

 

 

 

 

 

(86,499

)

Adjusted income before income taxes

 

 

629,174

 

 

 

131,249

 

 

 

132,357

 

 

 

168,705

 

 

 

196,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income tax expense

 

$

133,564

 

 

$

18,659

 

 

$

13,114

 

 

$

35,627

 

 

$

66,164

 

Restructuring, integration, and other expenses

 

 

13,000

 

 

 

7,251

 

 

 

2,772

 

 

 

1,274

 

 

 

1,703

 

Amortization of intangible assets

 

 

700

 

 

 

185

 

 

 

156

 

 

 

156

 

 

 

203

 

Foreign currency loss (gain) and other, net

 

 

7,373

 

 

 

88

 

 

 

5,251

 

 

 

2,034

 

 

 

 

Gain on legal settlements and other

 

 

(20,434

)

 

 

 

 

 

 

 

 

 

 

 

(20,434

)

Income tax expense items, net

 

 

4,992

 

 

 

(6,489

)

 

 

10,472

 

 

 

1,399

 

 

 

(390

)

Adjusted income tax expense

 

 

139,195

 

 

 

19,694

 

 

 

31,765

 

 

 

40,490

 

 

 

47,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

498,699

 

 

$

82,665

 

 

$

88,834

 

 

$

117,931

 

 

$

209,268

 

Restructuring, integration, and other expenses (net of tax)

 

39,550

 

 

 

21,166

 

 

 

9,075

 

 

 

3,961

 

 

 

5,348

 

Amortization of intangible assets (net of tax)

 

 

2,430

 

 

 

643

 

 

 

556

 

 

 

556

 

 

 

675

 

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

 

 

20,357

 

 

 

592

 

 

 

12,599

 

 

 

7,166

 

 

 

 

Gain on legal settlements and other (net of tax)

 

 

(66,065

)

 

 

 

 

 

 

 

 

 

 

 

(66,065

)

Income tax expense items, net

 

 

(4,992

)

 

 

6,489

 

 

 

(10,472

)

 

 

(1,399

)

 

 

390

 

Adjusted net income

 

 

489,979

 

 

 

111,555

 

 

 

100,592

 

 

 

128,215

 

 

 

149,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

5.43

 

 

$

0.91

 

 

$

0.97

 

 

$

1.28

 

 

$

2.25

 

Restructuring, integration, and other expenses (net of tax)

 

0.43

 

 

 

0.23

 

 

 

0.10

 

 

 

0.04

 

 

 

0.06

 

Amortization of intangible assets (net of tax)

 

 

0.03

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

 

 

0.01

 

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

 

 

0.22

 

 

 

0.01

 

 

 

0.14

 

 

 

0.08

 

 

 

 

Gain on legal settlements and other (net of tax)

 

 

(0.72

)

 

 

 

 

 

 

 

 

 

 

 

(0.71

)

Income tax expense items, net

 

 

(0.05

)

 

 

0.07

 

 

 

(0.11

)

 

 

(0.01

)

 

 

0.00

 

Adjusted diluted EPS

 

 

5.34

 

 

 

1.22

 

 

 

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 fourth quarter and fiscal year 2024 compared to the fourth quarter and fiscal year 2023.

 

 

Quarter Ended

 

Years Ended

 

 

June 29, 2024

 

June 29, 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

 

(15.1

)%

 

(14.2

)%

 

(1.6

)%

 

(1.0

)%

 

(10.5

)%

 

(10.9

)%

Avnet by region

 

 

 

 

 

 

 

 

Americas

 

(21.9

)%

 

(21.9

)%

 

(3.5

)%

 

(3.5

)%

 

(13.1

)%

 

(13.1

)%

EMEA

 

(21.6

)

 

(20.7

)

 

(6.5

)

 

(5.6

)

 

(9.0

)

 

(11.4

)

Asia

 

(3.5

)

 

(1.9

)

 

4.2

 

 

4.8

 

 

(10.1

)

 

(9.0

)

Avnet by segment

 

 

 

 

 

 

 

 

EC

 

(15.1

)%

 

(14.1

)%

 

(1.1

)%

 

(0.5

)%

 

(10.7

)%

 

(11.0

)%

Farnell

 

(15.8

)

 

(15.4

)

 

(8.0

)

 

(7.5

)

 

(7.9

)

 

(9.3

)

Historical Segment Financial Information

 

 

 

 

Quarters Ended

 

 

Fiscal

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

 

 

Year

 

June 29,

 

March 30,

 

December 30,

 

September 30,

 

 

2024*

 

2024

 

2024

 

2023

 

2023

 

 

($ in millions)

Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

22,160.0

 

 

$

5,187.8

 

 

$

5,245.8

 

 

$

5,812.1

 

 

$

5,914.4

 

Farnell

 

 

1,597.1

 

 

 

375.2

 

 

 

407.8

 

 

 

392.8

 

 

 

421.2

 

Avnet sales

 

$

23,757.1

 

 

$

5,563.0

 

 

$

5,653.6

 

 

$

6,204.9

 

 

$

6,335.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic Components

 

$

947.6

 

 

$

210.1

 

 

$

216.9

 

 

$

247.9

 

 

$

272.8

 

Farnell

 

 

64.8

 

 

 

15.1

 

 

 

16.3

 

 

 

15.7

 

 

 

17.7

 

 

 

 

1,012.4

 

 

 

225.2

 

 

 

233.2

 

 

 

263.6

 

 

 

290.5

 

Corporate expenses

 

 

(112.3

)

 

 

(31.8

)

 

 

(30.5

)

 

 

(21.4

)

 

 

(28.7

)

Restructuring, integration, and other expenses

 

 

(52.6

)

 

 

(28.4

)

 

 

(11.8

)

 

 

(5.2

)

 

 

(7.1

)

Amortization of acquired intangible assets

 

 

(3.1

)

 

 

(0.8

)

 

 

(0.7

)

 

 

(0.7

)

 

 

(0.9

)

Avnet operating income

 

$

844.4

 

 

$

164.2

 

 

$

190.2

 

 

$

236.3

 

 

$

253.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales by geographic area:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

5,919.2

 

 

$

1,353.8

 

 

$

1,403.4

 

 

$

1,588.5

 

 

$

1,573.5

 

EMEA

 

 

8,395.0

 

 

 

1,920.3

 

 

 

2,053.1

 

 

 

2,113.6

 

 

 

2,308.0

 

Asia

 

 

9,442.9

 

 

 

2,288.9

 

 

 

2,197.1

 

 

 

2,502.8

 

 

 

2,454.1

 

Avnet sales

 

$

23,757.1

 

 

$

5,563.0

 

 

$

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 first quarter of fiscal 2025.

 

 

Low End of

 

High End of

 

 

Guidance Range

 

Guidance Range

 

 

 

 

 

 

 

Adjusted diluted earnings per share guidance

 

$

0.80

 

 

$

0.90

 

Restructuring, integration, and other expenses (net of tax)

 

 

(0.17

)

 

 

(0.08

)

GAAP diluted earnings per share guidance

 

$

0.63

 

 

$

0.82

 

 

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