First quarter sales rose 9.2 percent year over year
GAAP diluted EPS rose 53 percent to $0.72; adjusted diluted EPS rose 36 percent to $1.03
PHOENIX — (BUSINESS WIRE) — October 25, 2018 — Avnet, Inc. (Nasdaq: AVT) today announced results for the first quarter ended September 29, 2018.
First Quarter Key Financial Highlights
-
Sales of $5.09 billion rose 9.2% year over year
- Sales grew 9.9% year over year in constant currency
-
GAAP diluted EPS from continuing operations rose 53.2% to $0.72 year
over year
- Adjusted diluted EPS from continuing operations increased 35.5% to $1.03 year over year
-
GAAP operating income of $146.8 million rose 127.4% year over year
- Adjusted operating income of $182.5 million rose 33.7% year over year
-
GAAP operating income margin of 2.9%
- Adjusted operating income margin of 3.6% expanded 66 basis points year over year
- Net working capital days declined by 1 day to 83 days
CEO Commentary
“We are pleased to report the continued positive trend in profitability and growth entering fiscal year 2019,” said Bill Amelio, Chief Executive Officer, Avnet. “With the introduction of Avnet’s new comprehensive ecosystem last year, we have expanded our portfolio of services significantly, which has resulted in first quarter growth among both our existing customers as well as with new and non-traditional customers.”
Key Financial Metrics
($ in millions, except per share data)
| First Quarter Results (GAAP)(2) | ||||||||||||||||||||
| Sep – 18 | Sep – 17 | Change Y/Y | Jun – 18 | Change Q/Q | ||||||||||||||||
| Sales | $ | 5,089.9 | $ | 4,660.9 | 9.2 | % | $ | 5,059.2 | 0.6 | % | ||||||||||
| Operating Income | 146.8 | 64.6 | 127.4 | % | 121.5 | 20.8 | % | |||||||||||||
| Operating Income Margin | 2.9 | % | 1.4 | % | 149 | bps | 2.4 | % | 48 | bps | ||||||||||
| Diluted Earnings Per Share | $ | 0.72 | $ | 0.47 | 53.2 | % | $ | 0.49 | 46.9 | % | ||||||||||
| First Quarter Results (Non-GAAP) (1)(2) | ||||||||||||||||||||
| Sep – 18 | Sep – 17 | Change Y/Y | Jun – 18 | Change Q/Q | ||||||||||||||||
| Sales | $ | 5,089.9 | $ | 4,660.9 | 9.2 | % | $ | 5,059.2 | 0.6 | % | ||||||||||
| Adjusted Operating Income | 182.5 | 136.5 | 33.7 | % | 180.1 | 1.3 | % | |||||||||||||
| Adjusted Operating Income Margin | 3.6 | % | 2.9 | % | 66 | bps | 3.6 | % | 3 | bps | ||||||||||
| Adjusted Diluted Earnings Per Share | $ | 1.03 | $ | 0.76 | 35.5 | % | $ | 0.99 | 4.0 | % | ||||||||||
| Segment and Geographical Mix (2) | ||||||||||||||||||||
| Sep – 18 | Sep – 17 | Change Y/Y | Jun – 18 | Change Q/Q | ||||||||||||||||
| Electronic Components (EC) Sales | $ | 4,710.8 | $ | 4,307.2 | 9.4 | % | $ | 4,668.7 | 0.9 | % | ||||||||||
| EC Operating Income Margin | 3.4 | % | 3.2 | % | 20 | bps | 3.4 | % | 1 | bps | ||||||||||
| Premier Farnell (PF) Sales | $ | 379.1 | $ | 353.7 | 7.2 | % | $ | 390.5 | (2.9 | ) | % | |||||||||
| PF Operating Income Margin | 10.8 | % | 9.2 | % | 153 | bps | 11.2 | % | (43 | ) | bps | |||||||||
| Americas Sales | $ | 1,271.8 | $ | 1,185.5 | 7.3 | % | $ | 1,339.2 | (5.0 | ) | % | |||||||||
| EMEA Sales | 1,714.9 | 1,693.0 | 1.3 | % | 1,779.6 | (3.6 | ) | % | ||||||||||||
| Asia Sales | 2,103.2 | 1,782.4 | 18.0 | % | 1,940.4 | 8.4 | % | |||||||||||||
|
(1) |
A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release. | |
|
(2) |
Certain prior year amounts in the Company’s measurement of operating income have been recasted to reflect the adoption of new accounting standards during the first quarter of fiscal 2019. |
