Avnet Earnings: Everything You Must Know Now

Avnet Inc. (NYSE:AVT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Avnet Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.01% to $0.98 in the quarter versus EPS of $0.99 in the year-earlier quarter.

Revenue: Rose 4.49% to $6.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Avnet Inc. reported adjusted EPS income of $0.98 per share. By that measure, the company beat the mean analyst estimate of $0.96. It beat the average revenue estimate of $6.48 billion.

Quoting Management: Rick Hamada, Chief Executive Officer, commented, “Our Q4 results came in above our original expectations as better than expected sequential revenue growth at EM and our expense management actions combined to deliver significant bottom-line leverage resulting in operating income growing three times faster than revenue. Organic enterprise revenue in constant currency grew 5.0% sequentially, at the high end of normal seasonality as year-over-year growth crossed into positive territory for the first time in seven quarters. Adjusted operating income increased 14.2% sequentially and adjusted operating income margin was up 28 basis points with both operating groups contributing to this improvement. An improvement in working capital velocity, both sequentially and year over year, coupled with strong profits drove cash flow from operations of $267 million this quarter and $696 million for the full fiscal year. Given that the substantial majority of our previously announced restructuring initiatives have been implemented, and we are beginning to see various positive signals on our dashboards, we plan to build on this most recent performance and sustain progress toward our long-term goals.”

Key Stats (on next page)…

Revenue increased 4.64% from $6.3 billion in the previous quarter. EPS increased 8.89% from $0.90 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.86 and has not changed. For the current year, the average estimate has moved up from a profit of $3.39 to a profit of $3.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)