Avnet’s (AVT) Q4 Earnings Beat, Revenues Meet Estimates


Avnet


AVT

reported fourth-quarter fiscal 2021 non-GAAP earnings of $1.12 per share, surpassing the Zacks Consensus Estimate by 8.7%. The reported figure also jumped 75% year over year and 51.4%, sequentially.

Revenues jumped 25.7%, year over year, and 6.3%, sequentially, to $5.23 billion. On a constant currency basis, fourth-quarter sales increased 21.5%, year over year, and 6.4%, sequentially. The top-line figure is also in line with the Zacks Consensus Estimate.

Robust sales in Asia and Europe, Middle East, and Africa (EMEA) regions boosted revenues in the reported quarter. Improvement in Americas also served as tailwind.

Avnet, Inc. Price, Consensus and EPS Surprise

Avnet, Inc. Price, Consensus and EPS Surprise


Avnet, Inc. price-consensus-eps-surprise-chart

|

Avnet, Inc. Quote

Quarter in Detail

Electronic Components segment revenues rose 23.7% year over year to $4.79 billion on strong growth across all regions.

The Farnell segment’s revenues of $441.4 million climbed 51.1% year over year.

Revenues from the Americas increased 3.9% year over year. Sales from the EMEA and Asia regions jumped 29.3% and 37.7%, year over year, respectively.

Avnet reported gross profit of $644.9 million, up 35.8% year over year. Gross margin expanded 90 basis points (bps) to 12.3%.

Adjusted operating income was $151.8 million, soaring 253.7%, year over year. Adjusted operating margin came in at 2.9%, up 187 bps.

Adjusted operating expenses flared up 14.1%, year over year, to $493.1 on elevated costs associated with the company’s sales growth.

Fiscal 2021 Highlights

Avnet reported fiscal 2021 non-GAAP earnings of $2.71 per share, surpassing the Zacks Consensus Estimate by 3.4%. The reported figure also increased 32.8% year over year. Revenues jumped 10.8% year over year to $19.53 billion as well as beat the Zacks Consensus Estimate of $19.51 billion.


Balance Sheet and Cash Flow

As of Jul 3, 2021, Avnet had cash and cash equivalents of $199.7 million compared with the $323 million recorded at the end of the previous quarter.

Long-term debt was $1.19 billion as of Jul 3, up from the $895.9 million reported in the prior quarter.

Net debt leverage ratio was 1.9 at the end of fiscal 2021. It generated operating cash flow of $90.9 million in fiscal 2021. Avnet returned $84.3 million to shareholders in the form of dividends during the fiscal.

Q1 Fiscal 2022 Guidance

Avnet estimates fiscal first-quarter revenues in the range of $5.1-$5.4 billion. Non-GAAP earnings for the current quarter are anticipated in the range of $1.02-$1.12 per share.

Zacks Rank & Other Stocks to Consider

Avnet currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector include

Microsoft


MSFT

,

Cadence Design Systems


CDNS

and

Texas Instruments


TXN

, all carrying a Zacks Rank of 2, at present. You can see


the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here


.

The long-term earnings growth rate for Microsoft, Cadence Design and Texas Instruments is currently pegged at 11.5%, 11.7% and 9.3%, respectively.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.


See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report


To read this article on Zacks.com click here.


Zacks Investment Research