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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%.
Avnet
Avnet
Avnet Revenue by Segment
Avnet Revenue by Geographic Location
Revenue by Segment
Electronic Components Revenue
CapyFin.comFarnell Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Revenue
CapyFin.com 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.
- Market conditions existing as of the report date.
- Seasonally lower revenues in Asia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income