Avnet (AVT) Tops Q3 EPS by 1c, Revenues Miss; Affirms Q4 EPS/Revenue Mid-Point Guidance Below Consensus

Avnet (NASDAQ: AVT) reported Q3 EPS of $1.09, $0.01 better than the analyst estimate of $1.08. Revenue for the quarter came in at $4.7 billion versus the consensus estimate of $4.75 billion.

• Delivered sales of $4.70 billion, in line with guidance
  • In constant currency, sales rose 1.2% compared to the year ago period
• GAAP diluted EPS from continuing operations totaled $0.87
  • Adjusted diluted EPS was $1.09, up 4.8% sequentially and 6.9% from a year ago
• GAAP operating income margin of 3.3%, was up 136 basis points sequentially
  • Adjusted operating income margin was 3.8%, up from 3.6% a year ago
• Cash flow from operations totaled $269 million
• Premier Farnell (Farnell) adjusted operating margin rose to 12.4% from 10.8% in the prior year
• IoT pipeline now exceeds $600 million, and has expanded to new markets including industrial equipment and manufacturing
• Returned $139 million to shareholders with $117 million of share repurchases and dividends totaling $22 million

CEO Commentary

“I am pleased with the strong execution we demonstrated this quarter,” said Avnet CEO Bill Amelio. “We saw continued strength in our Americas and EMEA regions and solid performance in the higher margin interconnect and passives segment. Overall, we improved operating income and earnings per share and expanded our operating margins compared to a year ago. These results demonstrate the progress of our transformation and the value our unique ecosystem is delivering to our customers. With continued increases in our solutions pipeline and strong execution momentum, we are well positioned to achieve our long-term growth targets and deliver sustained shareholder returns.”

GUIDANCE:

Avnet sees Q4 2019 EPS of $1.00-$1.08, versus the consensus of $1.08. Avnet sees Q4 2019 revenue of $4.5-4.9 billion, versus the consensus of $4.81 billion.

For earnings history and earnings-related data on Avnet (AVT) click here.

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