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Avnet (AVT) Q1 Earnings and Revenues Beat Estimates, Up Y/Y
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Avnet (AVT - Free Report) reported better-than-expected first-quarter fiscal 2023 results and provided impressive guidance for the second quarter of fiscal 2023.
The company’s fiscal first-quarter non-GAAP earnings were $2 per share, which surpassed the Zacks Consensus Estimate of $1.91. The reported figure jumped 63.9% year over year.
Revenues climbed 20.9% year over year to $6.75 billion. On a constant-currency basis, fiscal first-quarter sales increased 28.9% year over year. The top line also beat the Zacks Consensus Estimate of $6.35 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.
The Electronic Components segment’s revenues were up 23.3% year over year to $6.32 billion on stellar growth across all regions.
However, the Farnell segment’s revenues inched down 6.4% to $425.9 million. The segment’s revenues continue to get negatively impacted by currency fluctuations, specifically the weakening British pound and the ongoing shortage of components required to complete single-board computers.
Revenues from America increased 33.4% year over year. Sales from the EMEA and Asia regions jumped 21.9% and 14.1% year over year, respectively.
Avnet reported a gross profit of $768.2 million, up 16.4% year over year. The gross margin contracted 40 basis points (bps) to 11.4%.
The adjusted operating income came in at $293.3 million, soaring 64.1% year over year. The adjusted operating margin came in at 4.4%, up 115 bps.
Balance Sheet and Cash Flow
As of Oct 1, 2022, AVT had cash and cash equivalents of $80.9 million compared with the $153.7 million reported at the end of the previous quarter.
Long-term debt was $1.83 billion as of Oct 1, up from the $1.44 billion reported in the prior quarter. During the quarter, Avnet used cash worth $645.1 million for operational activities.
In the fiscal first quarter, the company repurchased shares worth $148 million and returned $27 million to shareholders through dividend payouts.
Second-Quarter Fiscal 2023 Guidance
Avnet estimates second-quarter fiscal 2023 revenues in the range of $6.35-$6.65 billion (midpoint $6.50 billion). Non-GAAP earnings for the current quarter are anticipated in the range of $1.80-$1.90 per share (midpoint $1.85).
Zacks Rank & Key Picks
Avnet currently carries a Zacks Rank #3 (Hold). Shares of the company have climbed 10.6% in the past year.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 30 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 46 cents southward to $2.51 per share over the past 60 days. For 2022, earnings estimates have moved 16.2% north to $9.16 per share in the past 60 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.
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Avnet (AVT) Q1 Earnings and Revenues Beat Estimates, Up Y/Y
Avnet (AVT - Free Report) reported better-than-expected first-quarter fiscal 2023 results and provided impressive guidance for the second quarter of fiscal 2023.
The company’s fiscal first-quarter non-GAAP earnings were $2 per share, which surpassed the Zacks Consensus Estimate of $1.91. The reported figure jumped 63.9% year over year.
Revenues climbed 20.9% year over year to $6.75 billion. On a constant-currency basis, fiscal first-quarter sales increased 28.9% year over year. The top line also beat the Zacks Consensus Estimate of $6.35 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.
Avnet, Inc. Price, Consensus and EPS Surprise
Avnet, Inc. price-consensus-eps-surprise-chart | Avnet, Inc. Quote
Quarter Details
The Electronic Components segment’s revenues were up 23.3% year over year to $6.32 billion on stellar growth across all regions.
However, the Farnell segment’s revenues inched down 6.4% to $425.9 million. The segment’s revenues continue to get negatively impacted by currency fluctuations, specifically the weakening British pound and the ongoing shortage of components required to complete single-board computers.
Revenues from America increased 33.4% year over year. Sales from the EMEA and Asia regions jumped 21.9% and 14.1% year over year, respectively.
Avnet reported a gross profit of $768.2 million, up 16.4% year over year. The gross margin contracted 40 basis points (bps) to 11.4%.
The adjusted operating income came in at $293.3 million, soaring 64.1% year over year. The adjusted operating margin came in at 4.4%, up 115 bps.
Balance Sheet and Cash Flow
As of Oct 1, 2022, AVT had cash and cash equivalents of $80.9 million compared with the $153.7 million reported at the end of the previous quarter.
Long-term debt was $1.83 billion as of Oct 1, up from the $1.44 billion reported in the prior quarter. During the quarter, Avnet used cash worth $645.1 million for operational activities.
In the fiscal first quarter, the company repurchased shares worth $148 million and returned $27 million to shareholders through dividend payouts.
Second-Quarter Fiscal 2023 Guidance
Avnet estimates second-quarter fiscal 2023 revenues in the range of $6.35-$6.65 billion (midpoint $6.50 billion). Non-GAAP earnings for the current quarter are anticipated in the range of $1.80-$1.90 per share (midpoint $1.85).
Zacks Rank & Key Picks
Avnet currently carries a Zacks Rank #3 (Hold). Shares of the company have climbed 10.6% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Digi International (DGII - Free Report) and Baidu (BIDU - Free Report) . While Zscaler and Digi International sport a Zacks Rank #1 (Strong Buy), Baidu carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved a penny north to $1.18 per share in the past 30 days.
Zscaler’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 51.3% in the past year.
The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 30 days.
DGII's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 28.6%. Shares of the company have increased 87.6% in the past year.
The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 46 cents southward to $2.51 per share over the past 60 days. For 2022, earnings estimates have moved 16.2% north to $9.16 per share in the past 60 days.
Baidu's earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 49.8% in the past year.