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Avnet (AVT) Beats on Earnings & Revenue Estimates in Q4

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Avnet (AVT - Free Report) reported better-than-anticipated fourth-quarter fiscal 2022 results and provided impressive guidance for the first quarter of fiscal 2023.

The company’s fiscal fourth-quarter non-GAAP earnings were $2.07 per share, which surpassed the Zacks Consensus Estimate of $1.96. The reported figure jumped a whopping 84.8% year over year.

Revenues climbed 21.9% year over year to $6.37 billion. On a constant-currency basis, fiscal fourth-quarter sales increased 28.2% year over year. The top line beat the Zacks Consensus Estimate of $6.2 billion.

Avnet’s quarterly results benefited from a strong demand environment for its products and the company’s continued investments in e-commerce and expanding customer relationships. Robust sales in the Americas, the EMEA and Asia bolstered revenues in the reported quarter.

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Avnet, Inc. price-eps-surprise | Avnet, Inc. Quote

Quarter in Detail

The Electronic Components segment’s revenues were up 23.9% year over year to $5.93 billion on stellar growth across all regions.

The Farnell segment’s revenues inched up 0.2% to $442.3 million.

Revenues from America increased 35.5% year over year. Sales from the EMEA and Asia regions jumped 18.8% and 17.2% year over year, respectively.

Avnet reported a gross profit of $779.6 million, up 20.9% year over year. The gross margin contracted 10 basis points (bps) to 12.2%.

The adjusted operating income came in at $287.6 million, soaring 89.4% year over year. The adjusted operating margin came in at 4.5%, up 160 bps.

Balance Sheet and Cash Flow

As of Jul 2, 2022, AVT had cash and cash equivalents of $153.7 million compared with the $199.5 million reported at the end of the previous quarter.

The long-term debt was $1.44 billion as of Jul 2, up from the $922 million reported in the prior quarter. During fiscal 2022, Avnet used cash worth $219.3 million for operational activities.

First-Quarter Fiscal 2023 Guidance

Avnet estimates first-quarter fiscal 2023 revenues in the range of $6.2 billion-$6.5 billion (midpoint $6.35 billion). Non-GAAP earnings for the current quarter are anticipated in the range of $1.85-$1.95 per share (midpoint $1.90).

Zacks Rank & Key Picks

Avnet currently carries a Zacks Rank #4 (Sell). Shares of AVT have increased 12.6% year to date (“YTD”).

Some better-ranked stocks worth considering from the broader technology sector are Cadence Design Systems (CDNS - Free Report) , Manhattan Associates (MANH - Free Report) and Paylocity (PCTY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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