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Apr 01, 2023
Avnet Q3 2023 Earnings Report
Third quarter sales and diluted EPS exceeded guidance, and Electronic Components achieved target operating margin.
Key Takeaways
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.
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 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income