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Jan 02, 2021
Avnet Q2 2021 Earnings Report
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.
Key Takeaways
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%.
Revenue by Segment
Revenue by Geographic Location
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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