Avnet Reports 10.5% Sales Decrease in Fiscal 2024

By Bobby Samwell • Wednesday, August 14 07:54 • Permanent Link

Avnet, Inc. has recently released its 10-K report, providing a detailed overview of its business and financial performance. Avnet, Inc. is a distributor of electronic component technology, operating through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors, interconnect, passive, and electromechanical components, while the Farnell segment distributes kits, tools, and electronic and industrial automation components.

In the report, Avnet, Inc. reported a decrease in sales for fiscal 2024, with sales amounting to $23.76 billion, a 10.5% decrease from fiscal 2023. The decrease in sales volume was primarily attributed to the ongoing market downturn in the electronic components industry and an unfavorable product mix of lower-priced electronic components. The company's gross profit margin decreased to 11.6% in fiscal 2024, a 35 basis point decrease from fiscal 2023.

Operating income for fiscal 2024 was $844.4 million, a decrease of 28.9% from fiscal 2023. Adjusted operating income for fiscal 2024 was $900.0 million, a decrease of 26.3% from fiscal 2023. The company also reported an increase in interest and other financing expenses, net, as well as other expenses, primarily due to foreign currency translation losses.

The company's net income for fiscal 2024 was $498.7 million, resulting in earnings per share on a diluted basis of $5.43, compared with fiscal 2023 net income of $770.8 million, or earnings per share on a diluted basis of $8.26.

In terms of liquidity and capital resources, Avnet, Inc. reported net cash provided by operating activities of $690.0 million during fiscal 2024, compared to net cash used by operating activities of $713.7 million during fiscal 2023. The increase in net cash provided by operating activities was primarily due to improvements in cash used for working capital and other factors.

Today the company's shares have moved 1.0% to a price of $53.24. If you want to know more, read the company's complete 10-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.