Avnet (AVT) Misses Q2 EPS by 1c, Revenues Beat; Offers Q3 EPS/Revenue Mid-Point Guidance Below Consensus
Avnet (NASDAQ: AVT) reported Q2 EPS of $0.40, $0.01 worse than the analyst estimate of $0.41. Revenue for the quarter came in at $4.5 billion versus the consensus estimate of $4.42 billion.
Second Quarter Key Financial Highlights:
- Sales of $4.5 billion were in line with guidance.
- GAAP diluted EPS from continuing operations totaled $0.05, compared with $0.33 a year ago.
- Non-GAAP adjusted diluted EPS totaled $0.40 compared with $1.04 a year ago.
- Foreign exchange rates negatively impacted adjusted diluted EPS by $0.02.
- GAAP operating income totaled $46.5 million, compared with $96.1 million a year ago.
- Adjusted operating income declined 54% year over year to $82.2 million.
- GAAP operating income margin was 1.0%, compared with 1.9% a year ago.
- Adjusted operating income margin was 1.8%, compared with 3.5% a year ago.
- Achieved operating expense reduction goal of $50 million annually.
- Cash flow from operations totaled $149 million, and totaled $948 million over the trailing four quarter period.
- Returned $109 million to shareholders with $88 million in share repurchases and $21 million in dividends paid during the quarter.
- Reduced revolving debt by $144 million with net debt of $1.20 billion at the end of the quarter.
CEO Commentary
“While our second quarter results reflected the ongoing correction the industry has experienced, we saw good signs of stabilization across key geographies,” said Avnet CEO Bill Amelio. “Meanwhile, our transformation initiatives are helping drive significant cost savings and our new way of doing business will keep us nimble and better equipped to serve our customers over the long term. This includes growing our electronics components customer and supplier base while continuing to expand our ecosystem and broaden our reach into new areas.”
GUIDANCE:
Avnet sees Q3 2020 EPS of $0.38-$0.48, versus the consensus of $0.48. Avnet sees Q3 2020 revenue of $4.1-4.5 billion, versus the consensus of $4.35 billion.
For earnings history and earnings-related data on Avnet (AVT) click here.