NASDAQ$AVT

Avnet Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Avnet's Q2 2021 financial results were announced, with sales of $4.7 billion and EPS of $0.19, exceeding guidance. The company achieved its third consecutive quarter of operating margin improvement.

Avnet reported a strong second quarter for fiscal year 2021, with sales reaching $4.7 billion and adjusted EPS exceeding guidance at $0.48. The company saw growth in Asia and improvements in Farnell, EMEA, and Americas businesses.

  • Sales reached $4.7 billion, up from $4.5 billion in the prior year quarter, driven by record sales in Asia.
  • GAAP diluted earnings per share was $0.19, a 200% increase compared to the prior quarter.
  • Non-GAAP adjusted diluted earnings per share was $0.48, a 33% increase compared to the prior quarter.
  • Farnell operating margins increased sequentially 97 basis points to 4.5%.

Headline financials

Total Revenue

$4.67B

Previous: $4.53B+2.9%
EPS (adj)

$0.48

Previous: $0.40+20.0%
Capital Expenditures

-$30M

Previous: -$44.3M+32.2%
Free Cash Flow

-$10.9M

Previous: -$40.6M+73.2%
Net Income

$19.2M

Previous: $3.67M+422.4%
Operating Income

$57.2M

Previous: $46.5M+23.1%
Gross Profit

$511M

Previous: $526M-2.7%
Cash & Equivalents

$376M

Previous: $489M-23.0%
Total Assets

$8.26B

Previous: $8.53B-3.1%
Stock-Based Comp

$10.4M

Previous: $7.29M+42.3%

Revenue & EPS history

Avnet · Revenue · Quarterly

$4.67B

Q2 2021+2.9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Avnet · $4.67B total across 2 segments · Q2 2021

  • Electronic Components
    $4.34B+3.3%
  • Farnell
    $326M-1.6%

Forward guidance

For the third quarter of fiscal year 2021, Avnet expects sales to be between $4.3 billion and $4.7 billion, with a midpoint of $4.5 billion. Non-GAAP diluted EPS is expected to be between $0.52 and $0.58, with a midpoint of $0.55.

Tailwinds

  • Guidance is based on market conditions existing as of the report date.
  • Expects seasonally lower revenues in Asia.
  • Gross margin improvement due to the mix shift from Asia to Americas and EMEA.
  • Ongoing cost reduction programs.
  • Excludes amortization of intangibles, any potential restructuring, integration, and other expenses and certain income tax adjustments.

Headwinds

  • Sales guidance assumes approximately $50 million in lower sales of Texas Instruments products as compared to the second quarter of fiscal 2021.
  • Guidance assumes 100 million average diluted shares outstanding.
  • Guidance assumes average U.S. Dollar to Euro and GBP currency exchange rates of $1.21 and $1.36 respectively.
  • Market conditions existing as of the report date.
  • Seasonally lower revenues in Asia.

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 2021

Historical avgQ2 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro