NASDAQ$AVT

Avnet Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results with sales growth across all regions and improved profitability.

Avnet's first quarter saw sales growth across all regions, driven by strong demand in most end markets. The team demonstrated their ability to execute consistently in challenging business conditions, delivering solid sales and improved profitability.

  • First quarter sales reached $6.8 billion, up 20.9% year over year.
  • Diluted earnings per share increased to $1.93, compared to $1.10 in the prior year quarter.
  • Adjusted diluted earnings per share was $2.00, compared to $1.22 in the prior year quarter.
  • Operating income margin increased to 4.3%, up 129 basis points year over year.

Headline financials

Total Revenue

$6.75B

Previous: $5.58B+20.9%
EPS (adj)

$2.00

Previous: $1.22+63.9%
Operating Income Margin

4.3%

No prior period
Adjusted Operating Income Margin

4.4%

No prior period
Capital Expenditures

-$28.2M

Previous: -$12M-134.6%
Free Cash Flow

$156M

Previous: $99.3M+57.2%
Net Income

$184M

Previous: $111M+65.5%
Operating Income

$291M

Previous: $168M+72.7%
Gross Profit

$768M

Previous: $660M+16.4%
Cash & Equivalents

$80.9M

Previous: $299M-73.0%
Total Assets

$11B

Previous: $9.21B+19.1%
Stock-Based Comp

$8.92M

Previous: $9.18M-2.8%

Revenue & EPS history

Avnet · Revenue · Quarterly

$6.75B

Q1 2023+20.9%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Avnet · $6.75B total across 2 segments · Q1 2023

  • Electronic Components
    $6.32B+23.3%
  • Farnell
    $426M-6.4%

Forward guidance

For the second quarter of fiscal year 2023, Avnet expects sales to be in the range of $6.35B to $6.65B and adjusted diluted EPS to be in the range of $1.80 to $1.90.

Tailwinds

  • Sales are expected to be between $6.35B and $6.65B.
  • Adjusted diluted EPS is expected to be between $1.80 and $1.90.
  • Guidance takes into account current market conditions.
  • Guidance assumes similar interest expense to the first quarter.
  • Guidance assumes an effective tax rate of between 21% and 25%.

Headwinds

  • Guidance includes a $60 million negative impact on sales due to the strengthening of the U.S. Dollar.
  • Guidance implies a sequential growth rate range of down 1% to down 5% in constant currency.
  • Guidance assumes a typical seasonal decline in sales from the western regions due to holidays.
  • Guidance excludes amortization of intangibles.
  • Guidance excludes certain income tax adjustments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.2%

Avg return

30 days after

39%

28 / 71 earnings

Positive

+13.9%

Q2 2026

Best reaction

-13.2%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+4.1%+2.7%+11.1%
Q2 2026+13.9%+20.2%+25.0%
Q1 2026-3.9%-4.7%-6.0%
Q3 2025-8.3%-2.3%-2.4%
Q2 2025+1.5%-5.1%-3.6%
Q1 2025-0.5%-0.8%+0.5%
Q4 2024+6.0%+6.6%+1.6%
Q3 2024-0.5%+1.8%+11.7%
Q2 2024-5.2%-5.8%-0.6%
Q1 2024-2.1%-0.2%+2.4%
Q4 2023+6.4%+7.1%+4.7%
Q3 2023+4.0%+1.4%+9.3%
Q2 2023+2.3%+1.3%-0.7%
Q1 2023-2.2%-0.4%+11.8%
Q4 2022-4.1%-1.4%-5.9%
Q3 2022+12.4%+13.1%+23.9%
Q2 2022+3.3%+4.4%+9.1%
Q1 2022+4.1%+8.2%+1.5%
Q4 2021-0.4%-3.2%-7.5%
Q3 2021-0.5%-1.4%-0.7%
Q2 2021-7.4%-5.0%-1.8%
Q1 2021-5.2%-0.9%+17.9%
Q4 2020+1.0%-0.3%-2.7%
Q3 2020+3.5%+5.9%+1.7%
Q2 2020+1.1%-4.2%-14.2%
Q1 2020-4.2%-2.2%-1.2%
Q4 2019-1.1%-1.1%+4.9%
Q3 2019+1.2%+2.4%-10.7%
Q2 2019+1.3%-0.4%+10.7%
Q1 2019-2.9%+1.7%+11.3%
Q4 2018+4.8%+3.4%+7.6%
Q3 2018-2.7%-2.5%-4.1%
Q2 2018+2.1%+0.2%-0.4%
Q1 2018-0.0%-0.7%+0.2%
Q4 2017-3.9%-2.2%-3.8%
Q3 2017-13.2%-15.9%-17.7%
Q2 2017-1.5%-2.5%-2.5%
Q1 2017-1.7%-1.4%+10.1%
Q4 2016-0.4%+0.8%-3.4%
Q3 2016-7.9%
Q2 2016+1.4%
Q1 2016+0.9%
Q4 2015+4.8%
Q3 2015-4.4%
Q2 2015+2.5%
Q1 2015+4.3%
Q4 2014-5.7%
Q3 2014-8.5%
Q2 2014-5.8%
Q1 2014-5.8%
Q4 2013+1.2%
Q3 2013-3.6%
Q2 2013+10.2%
Q1 2013+2.0%
Q4 2012-0.9%
Q3 2012-1.1%
Q2 2012+3.6%
Q1 2012-4.5%
Q4 2011-3.1%
Q3 2011+2.1%
Q2 2011+1.1%
Q1 2011-0.7%
Q4 2010-2.0%
Q4 2008-2.0%
Q3 2010-3.2%
Q3 2009-3.2%
Q2 2010-0.4%
Q1 2009-0.2%
Q4 2009-0.2%
Q1 2010-0.2%
Q2 2009-0.2%

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