It has been about a month since the last earnings report for Avnet (AVT). Shares have added about 0% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Avnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Avnet's Q1 Earnings and Revenues Beat Estimates

Avnet (AVT) reported better-than-expected results for first-quarter fiscal 2025. AVT reported earnings of 92 cents per share for the quarter, which surpassed the Zacks Consensus Estimate of 85 cents.

Quarterly earnings also came way above management’s guidance of 80-90 cents per share. However, the bottom line declined 42.9% year over year due to a decrease in revenues.

AVT’s fiscal first-quarter revenues were $5.6 billion, just above the high end of the company’s guidance of $5.25-$5.55 billion. The figure surpassed the Zacks Consensus Estimate of $5.41 billion. However, on a year-over-year basis, the top line declined 11.6%.

Avnet’s overall performance in the fiscal first quarter was driven by strong performance in the Asia region, offset by continued weakness in the West and Farnell business segments.

Quarterly Details

The Electronic Components segment’s revenues were down 11.1% year over year but increased 1.3% sequentially to $5.26 billion. Our estimates for the Electronic Components segment’s revenues were pegged at $5.04 billion.

Farnell sales declined 17.6% year over year and 7.5% sequentially to $347.1 million. Our estimates for the Farnell segment’s revenues were pegged at $359 million.

From a regional perspective, on a year-over-year basis, sales increased 6.2% in Asia to $2.61 billion but declined 27.7% in EMEA to $1.67 billion and 15.5% in the Americas to $1.33 billion.

The adjusted operating income came in at $168.9 million, which decreased 35.4% year over year. The operating income for the Electronic Components segment declined 27.8% to $197 million, while that for Farnell’s fell 88.9% to $2 million.

Avnet’s adjusted operating margin shrank 112 bps to 3% from the year-ago quarter. Electronic Components adjusted operating margin contracted 86 bps to 3.8%, while Farnell’s declined 366 bps to 0.5%.

Balance Sheet and Cash Flow

As of Sept. 30, 2024, AVT had cash and cash equivalents of $267.5 million compared with $310.9 million reported at the end of the previous quarter.