Avnet Reports Fourth Quarter and Fiscal Year 2024 Financial Results
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Avnet Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Avnet, Inc. (NASDAQ: AVT) today announced its financial results for the fourth quarter and fiscal year 2024 ended June 29, 2024.
Key Financial Metrics
| Financial Metric | Current Quarter (Q4 FY 2024) | Prior Quarter (Q4 FY 2023) | Consensus Estimates | Year-over-Year Change |
|---|---|---|---|---|
| Total Revenue ($B) | 5.6 | 6.6 | 5.37 | -15.2% |
| Diluted EPS ($) | 0.91 | 1.68 | 0.95 | -45.8% |
| Adjusted Diluted EPS ($) | 1.22 | 2.06 | - | -40.8% |
| Operating Income Margin (%) | 3.0 | 4.3 | - | -1.3% |
| Adjusted Operating Income Margin (%) | 3.5 | - | - | - |
| Electronic Components Operating Margin (%) | 4.1 | - | - | - |
| Farnell Operating Margin (%) | 4.0 | - | - | - |
Interpretation : Avnet reported $5.6 billion in revenue for Q4 FY 2024, a decrease of 15.2% year-over-year but above the consensus estimate of $5.37 billion. The diluted EPS of $0.91 fell short of the $0.95 consensus estimate and declined sharply from the previous year's $1.68. However, adjusted diluted EPS of $1.22 surpassed the diluted EPS despite being lower than the prior year's $2.06. The company's operating and adjusted operating income margins declined year-over-year, largely reflecting the challenging market conditions mentioned by the CEO.
Revenue Breakdown by Segment
| Segment | Current Quarter (Q4 FY 2024) Revenue ($B) | Previous Guidance ($B) | Year-over-Year Change (%) |
|---|---|---|---|
| Electronic Components | Not provided | Not provided | - |
| Farnell | Not provided | Not provided | - |
Interpretation : While specific revenue figures for each segment were not disclosed, Avnet reported that the operating income margin for both the Electronic Components and Farnell segments was robust at 4.1% and 4.0%, respectively.
Key Operational Data
| Metrics | Amount ($M) |
|---|---|
| Cash Flow from Operations | 274 |
| Share Repurchases | 79 |
| Dividends | 28 |
Comments from Company Officers
"We are pleased with our fiscal 2024 performance as we executed well, despite some challenging market conditions," said Avnet CEO 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."
Dividend and Share Repurchase Program
Avnet returned $79 million to shareholders through share repurchases, representing 1.6% of the outstanding shares, and $28 million in dividends during the fourth quarter. For the full fiscal year, the company repurchased $165 million worth of shares and paid $112 million in dividends.
Forward Guidance
For the first quarter of fiscal 2025, Avnet anticipates a sales change of flat to down approximately 5%, driven by expected sales declines in the western regions and growth in Asia. The guidance excludes restructuring, integration, foreign currency gains and losses, and certain income tax adjustments.
Stock Price Movement
Following the earnings release, Avnet's stock price changed by 0.08%.
This earnings report highlights Avnet's ability to navigate challenging market conditions and achieve significant cash flow, despite pressures on revenue and profit margins. The company remains cautiously optimistic entering fiscal year 2025.
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