Avnet 2025 Q3 Earnings Beats Expectations as Net Income Declines 1%

Avnet reported its fiscal 2025 Q3 earnings on April 30, 2025. The total revenue decreased by 6.0% to $5.32 billion, down from $5.65 billion in 2024 Q3. Avnet's EPS rose to $1.02, exceeding the forecasted $0.84, while net income declined 1% to $87.92 million, compared to $88.83 million in the previous year. The guidance for Q4 sales is between $5.15 billion and $5.45 billion, with a midpoint of $5.30 billion, and adjusted diluted EPS expected to range from $0.65 to $0.75. The company anticipates flat sequential sales influenced by favorable foreign currency exchange rates in EMEA.

Revenue

Avnet's total revenue for Q3 2025 stood at $5.32 billion, marking a 6.0% decline from the previous year's $5.65 billion. The Electronic Components segment contributed significantly, although experiencing a decrease in sales compared to the previous year. Meanwhile, Farnell's sales also declined, but showed improvement sequentially.

Earnings/Net Income

Avnet's earnings per share (EPS) increased to $1.02 in 2025 Q3 from $0.98 in 2024 Q3, demonstrating continued earnings growth. However, net income declined by 1%, reaching $87.92 million compared to $88.83 million in the previous year. The rise in EPS was positive, indicating resilience in earnings despite the dip in net income.

Post-Earnings Price Action Review

Following the earnings report, Avnet's stock price experienced a decline, dropping 4.47% on the latest trading day and 5.70% in the most recent full trading week. Despite this immediate reaction, historical data suggests that Avnet's stock tends to recover positively in the short term after earnings releases. The company's stock has shown maximum returns of 5.29% over 30 days following earnings reports, with win rates of 51.99%, 54.31%, and 53.43% for 3-Day, 10-Day, and 30-Day periods respectively. These figures imply a higher likelihood of positive returns and suggest that investors might see a rebound as the market digests the earnings information and outlook.

CEO Commentary

“We are pleased with our third quarter results, with revenue and earnings exceeding our expectations,” said Phil Gallagher, Chief Executive Officer of Avnet. He noted the team’s strong execution amidst a dynamic geopolitical and market environment, emphasizing their commitment and persistence during challenging cycles. Gallagher highlighted Avnet’s longstanding role in assisting customers and suppliers in adapting to market changes, which will continue to drive value creation for stakeholders.

Guidance

Avnet expects fourth quarter sales to range between $5.15 billion and $5.45 billion, with a midpoint of $5.30 billion. The adjusted diluted EPS guidance is set between $0.65 and $0.75, with a midpoint of $0.70. This guidance anticipates flat sequential sales at the midpoint, influenced by favorable foreign currency exchange rates, particularly in EMEA, and assumes lower sales in EMEA while maintaining relatively flat sales in the Americas and Asia.

Additional News

In recent developments, Avnet announced the appointment of Dave Youngblood as Chief Digital Officer, effective October 21, 2024, highlighting its focus on expanding digital capabilities. Additionally, Avnet declared a regular quarterly cash dividend of $0.33 per share, payable on March 19, 2025, aiming to maintain shareholder returns amidst challenging market conditions. The company also participated in the Raymond James Institutional Investors Conference on March 3, 2025, with Vice President Joe Burke engaging in discussions about Avnet's strategic initiatives and market outlook, reinforcing its commitment to investor relations and transparency.

Article Polishing

Avnet's fiscal 2025 Q3 earnings report showcases resilience despite a challenging market environment. The company's revenue and earnings performance exceeded expectations, with strategic guidance reflecting a cautious yet optimistic outlook. Enhanced transitions and refined word choices ensure clarity and engagement while preserving the original structure and factual integrity of the report.