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PHOENIX - On Wednesday, Avnet, Inc. (NASDAQ:AVT) reported fourth quarter fiscal 2025 results that exceeded analyst expectations, with adjusted earnings per share of $0.81 surpassing estimates of $0.74 and revenue of $5.6 billion beating the consensus of $5.36 billion.
The electronic components distributor saw its quarterly sales increase 1.0% YoY, though adjusted operating income margin contracted to 2.5% from 3.5% in the prior year period.
For the first quarter of fiscal 2026, Avnet projects adjusted earnings of $0.75-$0.85 per share, below the analyst consensus of $0.90, while revenue is expected to be $5.55-$5.85 billion, roughly in line with estimates of $5.56 billion.
"In fiscal year 2025, we executed well given the overall market environment," said Avnet Chief Executive Officer Phil Gallagher. "We remain optimistic about the recovery led by steady growth in our Asia region and the return of Farnell to year-over-year growth, which enabled us to surpass the high end of our fourth-quarter sales and earnings guidance."
The company reported its fourth consecutive quarter of YoY sales growth in Asia, where revenue jumped 17.6%. However, this was partially offset by a 16.7% decline in Europe, Middle East and Africa (EMEA) sales and a 2.0% decrease in Americas revenue.
Avnet’s Farnell segment, which distributes electronic components in small quantities, returned to growth with sales rising 3.0% YoY and operating income margin improving to 4.3% from 4.0% in the year-ago quarter.
During the quarter, Avnet generated $139 million in operating cash flow and returned $78 million to shareholders through $50 million in share repurchases and $28 million in dividends.
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