NASDAQ$AVT

Avnet Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Third quarter sales and diluted EPS exceeded guidance, and Electronic Components achieved target operating margin.

Avnet reported third-quarter sales of $6.5 billion, a 0.4% increase year-over-year, and diluted EPS of $2.03. The Electronic Components business achieved an operating margin of 5.0%.

  • Sales of $6.5 billion increased 0.4% year over year.
  • Diluted earnings per share increased to $2.03, compared with $1.84 in the prior year quarter.
  • Operating income margin of 4.8%, increased 58 basis points year over year.
  • Electronic Components operating income margin of 5.0%, increased 64 basis points year over year.

Headline financials

Total Revenue

$6.51B

Previous: $6.49B+0.4%
EPS (adj)

$2.00

Previous: $2.15-7.0%
Operating Income Margin

4.8%

No prior period
Capital Expenditures

-$138M

Previous: -$33.7M-309.2%
Free Cash Flow

$49.6M

Previous: $150M-66.9%
Net Income

$187M

Previous: $183M+2.2%
Operating Income

$314M

Previous: $274M+14.3%
Gross Profit

$812M

Previous: $813M-0.1%
Cash & Equivalents

$186M

Previous: $199M-6.8%
Total Assets

$12.1B

Previous: $9.78B+23.8%
Stock-Based Comp

$8.72M

Previous: $9.08M-4.0%

Revenue & EPS history

Avnet · Revenue · Quarterly

$6.51B

Q3 2023+0.4%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Avnet · $6.51B total across 2 segments · Q3 2023

  • Electronic Components
    $6.06B+0.7%
  • Farnell
    $455M-3.0%

Forward guidance

For the fourth quarter of fiscal year 2023, Avnet expects sales between $6.10B and $6.40B, and adjusted diluted EPS between $1.60 and $1.70.

Tailwinds

  • The guidance is based upon current market conditions.
  • The guidance implies a sequential growth rate range of down 1% to 6%.
  • The guidance assumes below seasonal changes in sales across all regions.
  • The guidance excludes restructuring, integration and other expenses.
  • The guidance excludes amortization of intangibles, gains on legal settlements and certain income tax adjustments.

Headwinds

  • Guidance assumes similar interest expense to the third quarter.
  • Guidance assumes an effective tax rate of between 22% and 26%.
  • Guidance assumes 93 million average diluted shares outstanding.
  • The above guidance is based upon current market conditions.
  • Guidance assumes average currency exchange rates as shown in the table.

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 Q3 2023

Historical avgQ3 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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