PHOENIX - Avnet Inc . (NASDAQ:AVT), a leading global distributor of electronic components and services, announced the results of its 2024 Annual Meeting of Shareholders held on Friday. The company reported that all ten nominees were elected to its Board of Directors, and the proposed executive compensation was approved by shareholders.
The newly elected board members will serve until the next annual meeting and until their successors are duly elected and qualified. The voting for the board nominees showed strong support, with the majority receiving over 74 million votes in favor. Rodney C. Adkins received the smallest majority with approximately 75 million votes in favor, while Philip R. Gallagher received the highest number of votes in favor, surpassing 79 million.
Additionally, shareholders approved, on an advisory basis, the compensation of the company's named executive officers with approximately 77 million votes in favor, 2.3 million against, and 312,000 abstentions.
Furthermore, the appointment of KPMG LLP as the independent public accounting firm for the fiscal year ending June 28, 2025, was ratified with an overwhelming majority of over 79 million votes for, 3.1 million against, and 176,000 abstentions.
In other recent news, Avnet reported strong financial results in the first quarter of fiscal year 2025, with sales surpassing the $5.6 billion mark and adjusted earnings per share (EPS) reaching $0.92, exceeding the company's guidance. This performance was primarily driven by a 14% sequential increase in sales in the Asia Pacific region, particularly within the server and data center markets. However, there was a 12% decline in overall sales year-over-year, with notable decreases in the EMEA and Americas regions. Operating expenses were reduced by 10% year-over-year to $439 million, and cash flow from operations exceeded $100 million, after accounting for $90 million in tax payments. The company also increased its quarterly dividend by 6% to $0.33 per share and expanded its share buyback authorization to $600 million. While the company anticipates a market uptick starting in late March 2025, it also expects modest growth in Europe in December.
InvestingPro Insights
Avnet's recent shareholder meeting results reflect confidence in the company's leadership, which aligns with several positive indicators from InvestingPro data. The company's market cap stands at $4.73 billion, with a P/E ratio of 14.03, suggesting a relatively modest valuation compared to earnings. This is further supported by an InvestingPro Tip indicating that Avnet is trading at a low revenue valuation multiple.
Shareholders' approval of executive compensation is complemented by management's proactive approach to creating value. An InvestingPro Tip highlights that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, Avnet boasts a high shareholder yield and has raised its dividend for 12 consecutive years, demonstrating a commitment to returning value to shareholders.
While the company faces challenges, including an expected drop in net income this year and weak gross profit margins, Avnet's financial position appears solid. The company's liquid assets exceed short-term obligations, and analysts predict profitability for the current year. These factors, combined with Avnet's prominent position in the Electronic Equipment, Instruments & Components industry, suggest a resilient foundation despite market fluctuations.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Avnet, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.