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Avnet, Inc. (Nasdaq: AVT) today announced results for its third quarter ended April 3, 2021.
Fiscal Third Quarter Key Financial Highlights:
- Sales of $4.9 billion, up from $4.7 billion sequentially and compared to $4.3 billion in the prior year quarter. Sales exceeded guidance, driven by broad end-market strength.
- On a constant currency basis, sales grew 10.7% year over year and 4.8% sequentially.
- Excluding Texas Instruments from both periods, sales grew 22% in constant currency year over year.
- GAAP diluted earnings per share of $1.07, compared with a GAAP diluted loss per share of $1.29 in the prior year quarter.
- Non-GAAP adjusted diluted earnings per share of $0.74, compared with $0.38 earnings per share in the prior year quarter.
- GAAP operating margin was up 447 basis points to 1.8% compared with negative 2.7% in the prior year quarter.
- Adjusted operating margin of 2.3% increased 62 basis points from 1.6% in the prior year quarter.
- Farnell operating margins increased sequentially 154 basis points to 6.0%.
- Sales of Texas Instruments’ products were less than $2 million compared with $400.6 million in the prior year quarter.
- As expected, cash used for operations totaled $9.9 million in the quarter as strong demand drives investment in working capital.
CEO Commentary
“In the third quarter, the impact of our back-to-basics strategy resulted in strong execution and performance across all regions,” said Avnet Chief Executive Officer Phil Gallagher. “As we continue to navigate supply constraints, extended lead times and a shifting operating environment, our deep relationships with our partners and tight management of our backlog will continue to be of utmost importance. Our prioritization of these relationships and focus on execution to date have put Avnet on a more linear growth path. Further, our ability to enhance value through demand creation for our partners has continued to contribute to our success at the center of the technology supply chain. We remain confident in our ability to execute and create value for our customers and suppliers.”
CFO Commentary
“In the third quarter, we grew our top line by 14% year over year and expanded operating margins for the third consecutive quarter, demonstrating the increasing value we provide to customers and suppliers as well as our continued strong execution,” said Avnet Chief Financial Officer Tom Liguori. “Over the past year, our team has successfully implemented a number of measures to strengthen our financial profile. As a more nimble and efficient organization that is investing across its business lines and geographies, Avnet is in a better position today to deliver for all stakeholders in this dynamic market.”
Additional Third Quarter Fiscal 2021 Highlights
- Returned $21 million to shareholders with dividends paid during the quarter.
- Awarded Best Global Performance and Best Asia Performance Awards by Amphenol.
- Partnered with ON Semiconductor to establish a framework to help OEMs more rapidly develop end-to-end IoT solutions.
- Kicked off 100th year anniversary celebration with the launch of Avnet’s Centennial Central platform, which details Avnet’s 100-year journey to date. To learn more, visit https://www.centennialcentral.com/.
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