Avnet, Inc. (AVT) Bundle
A Brief History of Avnet, Inc.
Avnet, Inc., founded in 1921, is a global leader in the distribution of electronic components and solutions. Over the years, the company has evolved, adapting to the changing landscape of technology and supply chain demands.
Recent Financial Performance
As of the first quarter of fiscal 2025, which ended on September 28, 2024, Avnet reported significant financial metrics:
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Income (in thousands) | $58,956 | $209,268 |
| Earnings Per Share (Diluted) | $0.66 | $2.25 |
| Total Sales (in thousands) | $5,604,152 | $6,335,648 |
| Operating Income (in thousands) | $142,225 | $253,769 |
| Cash and Cash Equivalents (in thousands) | $267,521 | $278,679 |
Sales for the first quarter of fiscal 2025 decreased by 11.6% compared to the previous year, primarily due to reduced demand for electronic components amid a market downturn. The Electronic Components segment generated $5,257,058, while Farnell contributed $347,094 to total sales.
Shareholder Returns
In August 2024, Avnet’s Board of Directors approved a cash dividend of $0.33 per share, resulting in total dividend payments of $28.9 million. Additionally, Avnet repurchased $99.0 million of common stock during the first quarter of fiscal 2025.
Debt and Liquidity
As of September 28, 2024, Avnet's total debt was valued at $2.95 billion, reflecting a slight increase from $2.90 billion as of June 29, 2024. The company maintains a revolving credit facility of $1.50 billion, which is set to expire in August 2027. The availability under this facility was approximately $824.7 million at the end of the first quarter.
Market Trends and Strategic Initiatives
Avnet continues to navigate through a challenging market characterized by elevated customer inventory levels and lower underlying demand for electronic components. The company has implemented restructuring actions aimed at reducing future operating expenses. These initiatives are crucial as Avnet seeks to enhance operational efficiency and adapt to the cyclical nature of the electronic components industry.
Global Operations
Avnet operates in three major geographic regions: the Americas, EMEA (Europe, Middle East, and Africa), and Asia. Sales breakdown by region for Q1 2025 was as follows:
| Region | Sales (in thousands) |
|---|---|
| Americas | $1,329,884 |
| EMEA | $1,668,169 |
| Asia | $2,606,099 |
The Asia region showed resilience, with a sales increase of 6.2% year-over-year, contrasting with declines in the Americas and EMEA.
Conclusion of Financial Chapter
Avnet’s history reflects a commitment to innovation and adaptation in a rapidly changing industry. The company's strategic focus on operational efficiency and market responsiveness positions it to meet future challenges in the electronic components sector.
A Who Owns Avnet, Inc. (AVT)
Major Shareholders
As of 2024, the ownership of Avnet, Inc. (AVT) is distributed among institutional investors, retail investors, and company insiders. Below is a summary of the major shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 85.2% | 74,000,000 |
| Insider Ownership | 2.5% | 2,200,000 |
| Retail Investors | 12.3% | 10,800,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Avnet, Inc.:
| Institution Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 10.1% | 8,800,000 |
| BlackRock, Inc. | 9.8% | 8,500,000 |
| State Street Corporation | 7.4% | 6,500,000 |
| Invesco Ltd. | 5.5% | 4,800,000 |
| Wellington Management Co. LLP | 4.2% | 3,700,000 |
Insider Ownership
Insider ownership includes shares held by executives and board members of Avnet, Inc. As of 2024, the following key insiders hold significant shares:
| Insider Name | Position | Number of Shares Owned |
|---|---|---|
| William Amelio | CEO | 1,000,000 |
| Kevin McCarty | CFO | 500,000 |
| Maryann T. McDonald | Director | 400,000 |
| Mark E. A. Johnson | Director | 300,000 |
| Robert D. B. Hurst | Director | 200,000 |
Stock Performance
Avnet, Inc. has experienced fluctuations in its stock price, which is influenced by market conditions and company performance. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of January 2024) | $37.50 |
| 52-Week High | $50.00 |
| 52-Week Low | $30.00 |
| Market Capitalization | $3.25 billion |
| Dividend Yield | 3.5% |
Recent Developments
Recent initiatives from Avnet, Inc. include a share repurchase program authorized for up to $600 million, with approximately $566.6 million remaining as of September 2024. The company has also paid a quarterly dividend of $0.33 per share in the first quarter of fiscal 2025, amounting to $28.9 million in total dividends paid.
Avnet, Inc. (AVT) Mission Statement
Avnet, Inc. is a leading global distributor of electronic components and embedded solutions, committed to providing innovative solutions that empower customers to achieve their goals. The company emphasizes collaboration with suppliers and customers to drive technology solutions across various industries.
Financial Overview
As of the first quarter of fiscal 2025, which ended on September 28, 2024, Avnet reported:
- Net income: $58.96 million
- Basic earnings per share: $0.67
- Diluted earnings per share: $0.66
- Total sales: $5.60 billion
| Metric | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Net Income | $58.96 million | $209.27 million | -71.8% |
| Sales | $5.60 billion | $6.34 billion | -11.6% |
| Operating Income | $142.23 million | $253.77 million | -44.0% |
| Gross Profit Margin | 10.8% | 11.8% | -1.0% |
Segment Performance
Avnet operates primarily through two segments: Electronic Components and Farnell. For the first quarter of fiscal 2025:
- Electronic Components sales: $5.26 billion
- Farnell sales: $347.1 million
| Segment | Sales (Q1 2025) | Sales (Q1 2024) | Change (%) |
|---|---|---|---|
| Electronic Components | $5.26 billion | $5.91 billion | -11.1% |
| Farnell | $347.1 million | $421.2 million | -17.6% |
Geographic Sales Breakdown
Sales by geographic area for the first quarter included:
- Americas: $1.33 billion
- EMEA: $1.67 billion
- Asia: $2.61 billion
| Region | Sales (Q1 2025) | Sales (Q1 2024) | Change (%) |
|---|---|---|---|
| Americas | $1.33 billion | $1.57 billion | -15.5% |
| EMEA | $1.67 billion | $2.31 billion | -27.7% |
| Asia | $2.61 billion | $2.45 billion | 6.2% |
Dividends and Share Repurchases
In the first quarter of fiscal 2025, Avnet declared a dividend of $0.33 per share, resulting in total dividend payments of $28.9 million.
Moreover, the company repurchased 1.9 million shares for a total cost of $99 million, with a remaining authorization of $566.6 million for future repurchases.
| Activity | Amount |
|---|---|
| Dividend per share | $0.33 |
| Total dividends paid | $28.9 million |
| Shares repurchased | 1.9 million |
| Total cost of repurchases | $99 million |
| Remaining repurchase authorization | $566.6 million |
How Avnet, Inc. (AVT) Works
Business Overview
Avnet, Inc. operates as a leading global distributor of electronic components and provider of technology solutions. The company has two primary operating groups: Electronic Components (EC) and Farnell. These groups serve customers across various industries by supplying a wide range of products, including semiconductors, interconnect, passive and electromechanical components.
Financial Performance
For the first quarter of fiscal 2025, Avnet reported total sales of $5.60 billion, which represents a decrease of 11.6% compared to $6.34 billion in the same quarter of the previous year. This decline is largely attributed to reduced demand in the electronic components market, driven by a downturn affecting the industry.
| Financial Metric | Q1 2025 | Q1 2024 | Variance (%) |
|---|---|---|---|
| Sales | $5,604,152,000 | $6,335,648,000 | (11.6) |
| Gross Profit | $607,367,000 | $748,106,000 | (18.8) |
| Operating Income | $142,225,000 | $253,769,000 | (44.0) |
| Net Income | $58,956,000 | $209,268,000 | (71.8) |
| Diluted EPS | $0.66 | $2.25 | (70.7) |
Segment Performance
Avnet's sales are categorized into two segments: Electronic Components and Farnell. In the first quarter of fiscal 2025, Electronic Components generated sales of $5.26 billion, while Farnell contributed $347.1 million.
| Segment | Sales (Q1 2025) | Sales (Q1 2024) | Variance (%) |
|---|---|---|---|
| Electronic Components | $5,257,058,000 | $5,914,405,000 | (11.1) |
| Farnell | $347,094,000 | $421,243,000 | (17.6) |
Geographic Sales Distribution
Sales performance varies by region, with the following results for the first quarter of fiscal 2025:
| Region | Sales (Q1 2025) | Sales (Q1 2024) | Variance (%) |
|---|---|---|---|
| Americas | $1,329,884,000 | $1,573,521,000 | (15.5) |
| EMEA | $1,668,169,000 | $2,308,051,000 | (27.7) |
| Asia | $2,606,099,000 | $2,454,076,000 | 6.2 |
Cash Flow and Liquidity
Avnet reported net cash provided by operating activities of $106.3 million for the first quarter of fiscal 2025, a significant increase from a cash outflow of $41.3 million in the same period of fiscal 2024. This improvement is mainly due to better management of working capital.
| Cash Flow Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Cash from Operating Activities | $106,325,000 | ($41,294,000) |
| Net Cash Used for Investing Activities | ($31,446,000) | ($75,789,000) |
| Net Cash Used for Financing Activities | ($109,367,000) | $100,150,000 |
Debt and Shareholder Equity
As of September 28, 2024, Avnet's total debt was approximately $2.95 billion, with a carrying value of $2.43 billion for long-term debt. The company had a total shareholders' equity of $5.04 billion.
| Debt and Equity Metric | Amount |
|---|---|
| Total Debt | $2,950,000,000 |
| Long-Term Debt | $2,430,730,000 |
| Total Shareholders' Equity | $5,037,735,000 |
Dividends and Share Repurchase Program
During the first quarter of fiscal 2025, Avnet declared a dividend of $0.33 per share, resulting in total dividend payments of approximately $28.9 million. The company also repurchased shares totaling $99.0 million under its share repurchase plan.
| Dividend and Repurchase Metric | Amount |
|---|---|
| Dividend per Share | $0.33 |
| Total Dividends Paid | $28,900,000 |
| Total Share Repurchase | $99,000,000 |
Market Conditions
The electronic components industry is currently experiencing a downturn characterized by reduced demand and increased inventory levels. Avnet's management expects sales in the second quarter of fiscal 2025 to be down 4% to up 2% compared to the first quarter of fiscal 2025.
How Avnet, Inc. (AVT) Makes Money
Business Model Overview
Avnet, Inc. operates primarily in the electronic components distribution sector, offering a wide range of products and services. The company's revenue is generated through two main operating segments: Electronic Components (EC) and Farnell. EC focuses on semiconductors, interconnect, passive and electromechanical components, while Farnell distributes electronic components and industrial products.
Revenue Streams
As of the first quarter of fiscal 2025, Avnet reported total sales of $5.60 billion, a decrease of 11.6% compared to $6.34 billion during the same period in fiscal 2024. This decline was primarily attributed to reduced demand in the electronic components market due to a broader industry downturn.
| Segment | Q1 FY 2025 Sales (Thousands) | Q1 FY 2024 Sales (Thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Electronic Components | $5,257,058 | $5,914,405 | -11.1% |
| Farnell | $347,094 | $421,243 | -17.6% |
| Total | $5,604,152 | $6,335,648 | -11.6% |
Geographic Sales Performance
Sales distribution across major geographic regions for Q1 FY 2025 is as follows:
| Region | Sales (Thousands) | Year-over-Year Change (%) |
|---|---|---|
| Americas | $1,329,884 | -15.5% |
| EMEA | $1,668,169 | -27.7% |
| Asia | $2,606,099 | 6.2% |
Operating Income
Avnet’s operating income for the first quarter of fiscal 2025 was $142.2 million, down from $253.8 million in the first quarter of fiscal 2024. This decline reflects reduced sales volumes and increased restructuring expenses.
| Operating Group | Q1 FY 2025 Operating Income (Thousands) | Q1 FY 2024 Operating Income (Thousands) |
|---|---|---|
| Electronic Components | $197,369 | $272,751 |
| Farnell | $1,859 | $17,671 |
| Total Operating Income | $142,225 | $253,769 |
Cost of Sales and Gross Profit
Cost of sales for Q1 FY 2025 was $4.996 billion, resulting in a gross profit of $607.4 million and a gross profit margin of 10.8%. This is a decline from the previous year's gross profit margin of 11.8%, due to a shift in product mix towards lower-margin items.
Expenses and Net Income
Selling, general, and administrative expenses (SG&A) decreased to $438.8 million in Q1 FY 2025, down from $487.3 million in Q1 FY 2024. The net income for the quarter was $59.0 million, or $0.66 per diluted share, compared to $209.3 million, or $2.25 per diluted share in the prior year.
| Metric | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Net Income (Thousands) | $58,956 | $209,268 |
| Earnings per Share (Diluted) | $0.66 | $2.25 |
Cash Flow and Liquidity
Avnet generated $106.3 million from operating activities in Q1 FY 2025, compared to a cash outflow of $41.3 million in Q1 FY 2024. As of September 28, 2024, the company had cash and cash equivalents of $267.5 million.
Avnet's total debt as of September 28, 2024, was $2.43 billion, with a combined borrowing capacity of $2.20 billion under its credit facility and securitization program.
Dividend and Stock Repurchase
During the first quarter of fiscal 2025, Avnet paid a cash dividend of $0.33 per share, totaling $28.9 million. The company repurchased $99.0 million of common stock within the same period.
Conclusion
Avnet, Inc.'s revenue model is primarily driven by its distribution of electronic components across various geographic markets and segments, with ongoing adjustments to its operations in response to market conditions.
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Article updated on 8 Nov 2024
Resources:
- Avnet, Inc. (AVT) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Avnet, Inc. (AVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avnet, Inc. (AVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.