• Fiscal Year 2024 Revenue: $23.8 billion.

• Fourth Quarter Revenue: $5.6 billion.

• Diluted Earnings Per Share (FY 2024): $5.43.

• Fourth Quarter Adjusted Operating Margin: 3.5%.

• Electronic Components Operating Margin (Q4): 4.1%.

• Gross Margin (Q4): 11.6%.

• SG&A Expenses (Q4): $450 million.

• Adjusted Operating Income (Q4): $193 million.

• Interest Expense (Q4): $64 million.

• Adjusted Effective Income Tax Rate (Q4): 15%.

• Adjusted Diluted Earnings Per Share (Q4): $1.22.

• Cash from Operations (Q4): $274 million.

• CapEx (Q4): $26 million.

• Share Repurchases (Q4): $79 million.

• Dividend Paid (Q4): $0.31 per share.

• Guidance for Q1 FY 2025 Revenue: $5.25 billion to $5.55 billion.

• Guidance for Q1 FY 2025 EPS: $0.80 to $0.90.

• Warning! GuruFocus has detected 7 Warning Signs with AVT.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Avnet Inc (NASDAQ:AVT) delivered $23.8 billion in revenues and $5.43 of diluted earnings per share for fiscal year 2024, exceeding top line and EPS guidance.

• The electronic components business achieved a 4.1% operating margin, marking 10 consecutive quarters of greater than 4% operating margin.

• Avnet Inc (NASDAQ:AVT) generated strong cash flow, with $274 million from operations in the fourth quarter and $690 million for the full fiscal year.

• The company has made structural improvements, particularly in the electronic components business, which has shown resilience despite market challenges.

• Avnet Inc (NASDAQ:AVT) is strategically positioned in the technology supply chain, with opportunities in AI growth trends and data center build-outs.

Negative Points

• Avnet Inc (NASDAQ:AVT) faced a softening demand environment, with sales down 15% year-over-year in the fourth quarter.

• Gross margin decreased by 92 basis points year-over-year, reflecting weaker market demand and lower sales mix from Western regions.

• Farnell, a part of Avnet Inc (NASDAQ:AVT), experienced sequential and year-over-year sales declines, with market softness impacting its performance.

• The company is dealing with elevated inventory levels in certain areas, which it aims to reduce while making strategic investments elsewhere.

• Avnet Inc (NASDAQ:AVT) anticipates continued market correction, with guidance for the first quarter of fiscal 2025 indicating potential sales declines.

Q & A Highlights

Q: Can you provide an update on the inventory situation and whether it has improved in terms of distribution by supplier and region? A: Philip Gallagher, CEO: Inventory levels are still higher than desired, particularly in certain commodities and product lines. We are working to balance this, and while some regions have made better progress than others, the situation remains somewhat uneven.