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PHOENIX - Electronic components distributor Avnet, Inc. (NASDAQ:AVT) reported mixed second quarter results and provided disappointing guidance, sending shares down 7.3% in premarket trading Wednesday.
Avnet posted adjusted earnings per share of $0.87 for the quarter ended December 28, 2024, missing analyst estimates by $0.01. Revenue came in at $5.7 billion, surpassing expectations of $5.56 billion but declining 8.7% YoY.
The company’s outlook fell short of Wall Street projections. For the third quarter, Avnet forecasts earnings per share between $0.65 and $0.75, well below the $1.02 consensus. Revenue is expected to be $5.05-$5.35 billion, also below analyst estimates of $5.51 billion.
"Although market conditions are challenging, the value we add at the center of the technology supply chain has never been more important," said Avnet CEO Phil Gallagher. He noted the company delivered sales and earnings within expectations while making progress on inventory optimization and cash flow generation.
Quarterly sales declined across most regions, with EMEA revenue down 25.1% YoY. However, Asia sales grew 8.4% compared to the prior year period. The Electronic Components segment saw an 8.5% YoY sales decrease, while Farnell revenue dropped 12%.
Avnet generated over $300 million in operating cash flow and reduced inventory by $362 million sequentially. The company returned $80 million to shareholders through share repurchases and dividends during the quarter.
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