NASDAQ$AVT

Avnet Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Avnet's financial performance reflected the ongoing industry correction, with sales and EPS aligned with guidance. Transformation initiatives drove significant cost savings, and the company is focused on growing its customer base and expanding into new areas.

Avnet reported second quarter fiscal year 2020 results, with sales of $4.5 billion and GAAP diluted EPS of $0.05. The company achieved its operating expense reduction goal of $50 million annually and returned $109 million to shareholders through share repurchases and dividends.

  • Sales of $4.5 billion were in line with guidance.
  • GAAP diluted EPS from continuing operations totaled $0.05, compared with $0.33 a year ago.
  • Non-GAAP adjusted diluted EPS totaled $0.40 compared with $1.04 a year ago.
  • Achieved operating expense reduction goal of $50 million annually.

Headline financials

Total Revenue

$4.53B

Previous: $5.05B-10.2%
EPS (adj)

$0.40

Previous: $1.04-61.5%
Operating Income Margin

1.0%

Previous: 1.9%-47.4%
Adjusted Operating Income

$82.2M

No prior period
Adjusted Operating Income Margin

1.8%

No prior period
Capital Expenditures

-$44.3M

Previous: -$70.2M+37.0%
Free Cash Flow

-$40.6M

Previous: -$33.8M-20.1%
Net Income

$3.67M

Previous: $36.4M-89.9%
Operating Income

$46.5M

Previous: $96.1M-51.6%
Gross Profit

$526M

Previous: $630M-16.6%
Cash & Equivalents

$489M

Previous: $482M+1.4%
Total Assets

$8.53B

Previous: $9.23B-7.7%
Stock-Based Comp

$7.29M

Previous: $8.03M-9.3%

Revenue & EPS history

Avnet · Revenue · Quarterly

$4.53B

Q2 2020-10.2%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Avnet · $4.53B total across 2 segments · Q2 2020

  • Electronic Components
    $4.2B-10.2%
  • Farnell
    $331M-10.1%

Forward guidance

For the third quarter of fiscal 2020, Avnet expects sales to be in the range of $4.1 billion to $4.5 billion, with a midpoint of $4.3 billion. Non-GAAP diluted EPS is expected to be between $0.38 and $0.48, with a midpoint of $0.43.

Tailwinds

  • Sales guidance midpoint is $4.3B
  • Non-GAAP diluted EPS guidance midpoint is $0.43
  • Estimated Annual Tax Rate 21%
  • Euro $1.11
  • GBP $1.30

Headwinds

  • Excludes amortization of intangibles
  • Excludes restructuring
  • Excludes integration
  • Excludes other expenses
  • 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 Q2 2020

Historical avgQ2 2020

-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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