Earnings Review and Free Research Report: Avnet’s Results Beat Revenue and Earnings Estimates

Research Desk Line-up: Arrow Electronics Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Avnet, Inc. (NYSE: AVT), can be viewed by registering at http://protraderdaily.com/optin/?symbol=AVT, following the Company’s release of its fourth quarter fiscal 2017 on August 09, 2017. The distributor of electronic components saw sales increase of 16.1% y-o-y, a jump of 17.9% y-o-y in adjusted operating income, and a surge of 42.4% y-o-y in adjusted diluted earnings per share. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Electronics Wholesale industry. Pro-TD has currently selected Arrow Electronics, Inc. (NYSE: ARW) for due-diligence and potential coverage as the Company announced on August 03, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Arrow Electronics when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AVT; also brushing on ARW. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

Avnet generated sales of $4.61 billion in fourth-quarter of fiscal 2017 compared to $3.97 billion in the corresponding quarter of the last fiscal year, registering an increase of 16.1% y-o-y and an organic growth of 6.8% y-o-y.

The Company’s operating income was $93.4 million in Q4 FY17 compared to $120.2 million in the corresponding quarter in fiscal 2016; a decrease of 22.3% y-o-y. Avnet’s adjusted operating income for fourth-quarter fiscal 2017 was $155.2 million compared to $131.7 million in the same quarter of the last fiscal year; a growth of 17.9% y-o-y.

The adjusted income from continuing operations for Avnet for Q4 FY17 was $105.0 million compared to $75.4 million in Q4 FY16; a growth of 39.3% y-o-y.

Avnet announced diluted earnings per share (EPS) from continuing operations of $0.59 for Q4 FY17 compared to $0.56 for the same quarter of the last fiscal year; a growth of 5.4% y-o-y. The adjusted diluted EPS from continuing operations for Q4 FY07 was $0.84 against $0.59 for the corresponding quarter of the last fiscal year; a growth of 42.4% y-o-y.

The Company beat Wall Street’s estimates in both earnings ($0.77) and revenues ($4.46 billion).

Segment Information

Avnet changed its reportable segments to Electronic Components and Premier Farnell operating groups as a result of the sale of the TS Business and the acquisition of Premier Farnell during the fourth quarter of fiscal 2017.

Electronics components segment reported sales of $4.26 billion for Q4 FY17 which was a 7.4% y-o-y enhancement in sales as well as in organic growth. The segment also reported operating income of $152.4 million in Q4 FY17 compared to $154.7 million in the corresponding quarter of the last fiscal year; a decrease of 1.5% y-o-y. Operating income margin reported by the Company in this segment was 3.6% in the fourth quarter of fiscal 2017 compared to 3.9% in the same quarter of the last fiscal year; a decrease of 32 basis points y-o-y.

The Company’s Premier Farnell business generated sales of $345.7 million in Q4 FY17. Avnet reported operating income of $35.5 million for this segment in Q4 FY17 and operating income margin of 10.3% in this segment for Q4 FY17.

Cash Matters

Avnet generated cash from continuing operations of $81 million in Q4 FY17 and $221 million in fiscal 2017. The Company held cash and cash equivalents at the end of Q4 FY17 of $836 million, while its net debt was $943 million at the end of the same period.

During the June quarter of fiscal 2017, Avnet repurchased 3.3 million shares, representing an aggregate investment of $136 million. Avnet paid a dividend of $0.18 per share, or $22 million, during the fourth quarter of fiscal 2017.

Dividend

On August 11, 2017, Avnet announced that its Board of Directors declared a regular quarterly cash dividend of $0.18 per share. The dividend will be paid on September 15, 2017, to shareholders of record as of the close of business on September 06, 2017.

Outlook

Avnet announced its outlook for Q1 FY18, expecting sales to be in the range of $4.15 billion to $4.45 billion. The Company also expects its adjusted diluted EPS to be in the range of $0.67 to $0.77 based on the assumption of 125 million average diluted shares outstanding and an adjusted tax rate of 23% to 27%.

CFO Transition

On the same day of its earnings release, Avnet announced that Kevin Moriarty, the Company’s Chief Financial Officer (CFO) for the past 4 and half years, has notified the Company of his decision to step down from the position due to personal reasons, effective August 18, 2017. Ken Jacobson, the Company’s controller, has been named interim CFO. Ken has been with Avnet for more than 4 years and brings a wealth of experience to this role. The Company is initiating a full search process immediately where both internal and external candidates will be considered.

Stock Performance

Avnet’s share price finished yesterday’s trading session at $37.97, climbing 1.12%. A total volume of 536.25 thousand shares have exchanged hands. The Company’s stock price advanced 1.88% in the last three months. Shares of the Company have a PE ratio of 18.52 and have a dividend yield of 1.90%. The stock currently has a market cap of $4.72 billion.

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