Avnet Inc (AVT) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...

GuruFocus.com10-31

Revenue: $5.6 billion, down 12% year over year, up 1% sequentially. Adjusted EPS: $0.92, above guidance. Cash Flow from Operations: Over $100 million generated in the quarter. Gross Margin: 10.8%, ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAvnet Inc (AVT) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 15:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/avnet-inc-avt-q1-2025-071552425.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $5.6 billion, down 12% year over year, up 1% sequentially.\nAdjusted EPS: $0.92, above guidance.\nCash Flow from Operations: Over $100 million generated in the quarter.\nGross Margin: 10.8%, ...</p>\n\n<a href=\"https://finance.yahoo.com/news/avnet-inc-avt-q1-2025-071552425.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AVT","symbol_name":"安富利电子","start_time":0,"source_url":"https://finance.yahoo.com/news/avnet-inc-avt-q1-2025-071552425.html","article_id":"2479228517","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jmpm2mA_GwmkMFuFsSsMCA--~B/aD0yMDA7dz0yMDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/3d3a6a65bf89708b1c9a3c13a7061a38"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479228517","pubTimestamp":1730358952,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $5.6 billion, down 12% year over year, up 1% sequentially.Cash Flow from Operations: Over $100 million generated in the quarter.Gross Margin: 10.8%, down 97 basis points year over year and 72 basis points sequentially.SG&A Expenses: $439 million, down 10% year over year and 3% sequentially.Adjusted Operating Income: $169 million with an operating margin of 3%.Interest Expense: $64 million, decreased by $6 million year over year.Inventory Days: Improved by 3 days sequentially to 101 days.Dividend Increase: Approximately 6% to $0.33 per share.Share Repurchase: Approximately $100 million worth of shares, more than 2% of shares outstanding.Book Value per Share: Improved to approximately $56 per share.Guidance for Q2 FY2025: Sales between $5.4 billion to $5.7 billion; EPS between $0.80 to $0.90.GuruFocus has detected 7 Warning Signs with AVT.Avnet Inc  achieved sales of more than $5.6 billion and adjusted EPS of $0.92, both above the high end of their guidance.Avnet Inc  experience","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"AVT":"安富利电子"},"translate_title":"安富利公司(AVT)2025年第一季度收益看涨期权亮点：通过战略增长应对挑战……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVT":1},"content_text":"Revenue: $5.6 billion, down 12% year over year, up 1% sequentially.\nAdjusted EPS: $0.92, above guidance.\nCash Flow from Operations: Over $100 million generated in the quarter.\nGross Margin: 10.8%, down 97 basis points year over year and 72 basis points sequentially.\nSG&A Expenses: $439 million, down 10% year over year and 3% sequentially.\nAdjusted Operating Income: $169 million with an operating margin of 3%.\nInterest Expense: $64 million, decreased by $6 million year over year.\nAdjusted Effective Tax Rate: 23%.\nInventory Days: Improved by 3 days sequentially to 101 days.\nCash Used for CapEx: $32 million.\nDividend Increase: Approximately 6% to $0.33 per share.\nShare Repurchase: Approximately $100 million worth of shares, more than 2% of shares outstanding.\nBook Value per Share: Improved to approximately $56 per share.\nGuidance for Q2 FY2025: Sales between $5.4 billion to $5.7 billion; EPS between $0.80 to $0.90.\n\n\nWarning! GuruFocus has detected 7 Warning Signs with AVT.\n\nRelease Date: October 30, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nAvnet Inc (NASDAQ:AVT) achieved sales of more than $5.6 billion and adjusted EPS of $0.92, both above the high end of their guidance.\nThe company generated over $100 million of cash flow from operations in the quarter.\nSales in the Asia region increased 14% sequentially and 6% year on year, driven by strength in server, data center, and communications end markets.\nAvnet Inc (NASDAQ:AVT) reported a modest increase in their turns business, which is usually a good indicator of future demand.\nThe company expanded its e-commerce presence in Asia-Pac, including a new team in Japan, indicating growth potential in the region.\n\n Negative Points \n\nAvnet Inc (NASDAQ:AVT) experienced a 12% year-over-year decline in sales, with significant declines in EMEA (28%) and the Americas (16%).\nFarnell sales declined 80% year over year and 8% sequentially, impacted by the EMEA macroenvironment.\nGross margin decreased to 10.8%, the lowest in several years, primarily due to a sales mix shift from Asia and lower margins at Farnell.\nThe global book-to-bill ratio remains below parity, indicating ongoing challenges in demand.\nInventory levels increased, driven by foreign currency exchange rates, and the company aims to reduce inventory days to the 80s by the end of the fiscal year.\n\n Q & A Highlights \nQ: Can you elaborate on the year-over-year growth in Asia, excluding data center opportunities? A: Philip Gallagher, CEO: The growth in Asia is not solely driven by data centers. We are seeing increases in consumer, communication, compute, and even aerospace sectors. The industrial sector in Asia is not as down as it is in Europe and the Americas.\nQ: What is the outlook for Farnell's business, and can it return to double-digit EBIT margins? A: Philip Gallagher, CEO: We believe in the Farnell model and expect it to return to previous levels of profitability. The business is undergoing restructuring, and we have a new leader, Rebecca Obregon, focusing on execution and cost reduction.\nQ: Where do you see the market correction heading, and have you noticed any impact from the WT Micro, Future acquisition? A: Philip Gallagher, CEO: We anticipate the market correction to last another quarter or two, with potential improvement in early 2025. Regarding the WT Micro, Future acquisition, we continue to compete with them as usual, with no significant impact noted.\nQ: How is the gross margin outlook, and what factors are influencing it? A: Kenneth Jacobson, CFO: Gross margin is primarily affected by the sales mix shift towards Asia and Farnell's performance. We expect gross margin to be flat to slightly up next quarter, with operating expenses also increasing slightly.\nQ: What is the plan for reducing inventory levels, and why has there been a delay compared to competitors? A: Kenneth Jacobson, CFO: Inventory levels are influenced by foreign currency and timing differences. We are focused on reducing inventory, particularly in specific product areas, while remaining open to opportunities that may require temporary increases.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479228517"}