What is Avnet's latest dividend and current dividend yield?

What does Avnet do and what are its main business segments?

What is Avnet's gross profit margin?

What is the market's earnings forecast for Avnet next quarter?

What is the revenue and EPS growth rate for Avnet year over year?

What were the key takeaways from Avnet's earnings call?

What factors drove the changes in Avnet's revenue and profit?

What guidance did Avnet's management provide for the next earnings period?

- **Revenue & EPS Beat**: $5.9B revenue (+5% YoY), adjusted EPS $0.84 near high end of guidance.
- **Regional Recovery**: Asia sales +10% YoY, Americas +3% YoY, EMEA flat YoY but improving sequentially.
- **AI Growth Driver**: 7% of Asia sales in data center/AI, with expanding opportunities in storage and interconnect.
- **Inventory Management**: Days of inventory targeting 80s, with quality aging maintained.
- **Margin Outlook**: Core margins to improve with seasonal mix, Farnell margins to expand with on-board component growth.
- **Q2 Guidance**: Sales $5.85B-$6.15B, EPS $0.90-$1.00, reflecting 2% sequential growth.

**【CEO Summary Section】**
- Q1 FY2026 revenue of $5.9 billion exceeded guidance, with adjusted EPS of $0.84 near the high end of expectations.
- **Regional Growth**: Asia sales grew 10% YoY, Americas sales increased 3% YoY, and EMEA sales were flat YoY but better than seasonal trends.
- **Key Verticals**: Transportation, compute, and communication segments drove year-over-year growth, with Farnell and IP&E businesses outperforming.
- **Market Trends**: Stable semiconductor lead times, with extended lead times in memory, storage, and interconnect products supporting data center and AI build-outs.
- **Inventory Management**: Days of inventory on hand decreased sequentially, and quality of inventory remains strong.

**【CFO Financial Commentary】**
- Gross margin of 10.4% declined 42bps YoY due to regional mix shifts and higher SG&A expenses (+$26M YoY).
- Operating income of $151 million reflected a 2.6% operating margin, with Farnell contributing 4.3% margin growth.
- **Balance Sheet**: $1.7 billion available borrowing capacity, with plans to reduce leverage to 3.0x over the next year.
- **Dividend & Share Repurchase**: 6% dividend increase to $0.35/share and $138 million in share repurchases.
- **Q2 Guidance**: Sales $5.85B-$6.15B (2% sequential growth at midpoint), EPS $0.90-$1.00.

**【Q&A Key Highlights】**
- **AI & Data Center Exposure**: 7% of Asia sales tied to hyperscalers, with opportunities in storage, connectivity, and power management.
- **Inventory Days Outlook**: Targeting 80s days by next quarter, with focus on reducing excess inventory while supporting growth.
- **Margins**: Core business margins expected to improve with seasonal mix shifts, Farnell margins to benefit from on-the-board component mix.
- **EMEA Recovery**: Modest growth expected in Q2, driven by improving bookings and backlog in Europe.
- **Supply Chain Trends**: Input costs remain high, but ASPs are holding steady despite supplier discussions on potential price increases.

Avnet, Inc. (AVT) Q1 2026 Earnings Call Transcript

- **Revenue momentum**: FY2025 revenue up 18% in Asia; Q4 2025 sales beat high end of guidance at $5.6B. Farnell operating margin improved 129bps QoQ to 4.3%.
- **Strategic investments**: $415M returned to shareholders; $300M+ buyback authorization remains. Digital transformation driving Farnell e-commerce growth >50% of sales.
- **FY2026 outlook**: Q1 guidance for $5.55B-$5.85B sales; EPS $0.75-$0.85. Optimistic on Asia-led recovery and Farnell margin expansion.
- **Risk management**: Inventory down 8% YoY; targeting mid-80s days of inventory. Tariffs impact <3% of Americas sales.


**【CEO Summary Section】**
- Fiscal 2025 revenue: $22.2 billion; adjusted EPS: $3.44. FY2025 highlights include 4 consecutive quarters of YoY growth in Asia, Farnell margin stabilization, and $139M Q4 cash flow from operations.
- Q4 2025 sales: $5.6B (6% sequential growth), driven by 18% YoY growth in Asia. Book-to-bill ratios improved across regions, with Europe and Asia above parity.
- Strategic moves: Appointment of Chief Digital Officer Dave Youngblood; promotion of Gilles Beltran as EMEA President. Succession planning emphasized for long-term stability.
- Forward outlook: Optimistic on FY2026 with Asia leading recovery, Farnell margin improvement, and stabilization of book-to-bill ratios. Gross margins held steady across regions despite mix shifts.

**【CFO Financial Commentary】**
- Q4 2025 financials: 
  - Sales: $5.6B (18% YoY growth in Asia, 17% decline in EMEA)
  - Gross margin: 10.6% (down 99bps YoY due to Asia mix)
  - Operating expenses: $451M (flat YoY, +2% sequentially excluding FX)
  - Adjusted EPS: $0.81 (vs. guidance of $0.75-$0.85)
  - Cash flow: $139M; FY2025 total: $725M
- Balance sheet: Inventory down 8% YoY; working capital return on investment: 9.4%
- FY2026 guidance: Q1 sales $5.55B-$5.85B; EPS $0.75-$0.85. Expect sequential sales growth in all regions.
- Capital allocation: $415M returned to shareholders in FY2025 (dividends + buybacks). $300M+ remaining on buyback authorization.

**【Q&A Highlights】**
- **EMEA recovery**: Bookings improving, backlog up YoY. Management cautious but optimistic about sequential growth post-summer slowdown.
- **Inventory trends**: EC business expects modest Q1 inventory decline. Targeting mid-80s days of inventory. Farnell inventory reduction offset by strategic investments.
- **Farnell margins**: 4.3% Q4 operating margin (vs. 1% in FY2023). Long-term target: 10-13% operating margin. Digital transformation driving e-commerce growth (>50% of sales).
- **Industry inventory correction**: Lead times stable; supplier, EMS, and OEM inventories down 11-20 days YoY. Company inventory down 8% YoY.
- **Tariffs**: <3% of Americas sales impacted; no material pull-ins from regulatory uncertainty.


Avnet, Inc. (AVT) Q4 2025 Earnings Call Transcript

- **Q3 Strong Performance**: $5.3B revenue, $0.84 EPS (above guidance), $141M cash flow. Asia sales up 13% YoY, Farnell margin improves to 3%.
- **Inventory Strategy**: Core inventory down $57M (constant currency), balancing destocking with strategic stock levels.
- **Tariff Mitigation**: 7-10% of Americas sales subject to tariffs; 30% of China-origin products routed to Mexico/Canada to avoid duties.
- **Q4 Outlook**: Flat sales guidance ($5.15-5.45B) reflects weak Europe, but Farnell recovery and AI-related growth in Asia provide hope.
- **Cash Return Focus**: $251M in buybacks YTD, $400M remaining under authorization, with debt reduced by $260M.

**【CEO Summary Section】**
- **Q3 Financial Highlights**: Revenue of $5.3 billion (near high end of guidance), adjusted EPS of $0.84 (above expectations), and $141 million in cash flow from operations.
- **Regional Performance**: Asia sales grew 13% YoY (third consecutive quarter of growth), while EMEA and Americas faced challenges. Farnell sales increased 6% sequentially with operating margin improving to 3%.
- **Inventory Management**: Core inventory reduced by $57 million (constant currency), with focus on optimizing mix and reducing elevated levels. Inventory is viewed as a strategic asset for customers in destocking phase.
- **Tariff Mitigation**: 7-10% of Americas sales subject to tariffs; leveraging global logistics, alternative country-of-origin solutions, and foreign trade zones to minimize impact.

**【CFO Financial Commentary】**
- **Revenue and Margin**: GAAP net income of $420 million, Non-GAAP EPS of $0.84 (exceeding guidance). Gross margin of 11.1% (down 78bps YoY due to sales mix shift to lower-margin regions).
- **Cost Control**: SG&A expenses down 7% YoY ($435 million), benefiting from $9 million gain on sale-leaseback. Operating margin of 2.9%.
- **Cash Flow and Capital Allocation**: $141 million Q3 cash flow, $251 million in share buybacks YTD, and $400 million remaining under repurchase authorization. Debt reduced by $260 million YTD.
- **Q4 Guidance**: Sales $5.15-5.45 billion, EPS $0.65-0.75, driven by flat-to-down sales in EMEA and flattish growth in Asia and Americas.

**【Q&A Key Takeaways】**
- **Sales Guidance Context**: Flat Q4 sales guidance reflects weak European demand and cautious outlook. Inventory reduction progress slower than expected, targeting $100+ million reduction Q4.
- **Tariff Impact**: Minimal pull-in activity ahead of tariffs; 30% of China-origin products destined for Mexico/Canada (tariff-free). No significant working capital impact yet.
- **Farnell Recovery**: Encouraging signs with improved order activity and margin expansion. Focus on SKU expansion and operational efficiency.
- **AI Exposure**: 3-5% of Asia sales tied to AI-related components, primarily in Taiwan. Longer-term AI-driven supply chain opportunities emerging.

Avnet (AVT)-30 Apr 25-2025 Q3 Earnings call transcript

- **Topline Resilience**: Q2 sales ($5.7B) beat high end of guidance, driven by +8% YoY growth in Asia. 
- **Margin Pressure**: Gross margin 10.5% (down 86bps YoY), primarily due to Asia mix shift. 
- **Cash Machine**: Generated $338M cash flow, reducing debt by $385M. 
- **Share Buybacks**: $51M in Q2, with $515M remaining under authorization. 
- **Guidance Caution**: Q3 sales expected to decline 6%-11% QoQ due to seasonal factors. 
- **Farnell Turnaround**: Operating margin improved to 1%, with cost reductions on track. 
- **Dividend Growth**: Committed to reliable dividend increases despite macro challenges. 


**【CEO Opening Remarks】**
- Q2 FY2025 sales: $5.7B (down 9% YoY, +1% QoQ). Adjusted EPS: $0.87 (vs. midpoint guidance). 
- **Regional Performance**: 
  - **Asia**: +8% YoY, driven by industrial, comms & transportation. 
  - **EMEA**: -25% YoY due to macroeconomic challenges. 
  - **Americas**: -14% YoY, though aerospace/defense end markets showed sequential growth. 
- **Inventory Progress**: Reduced core inventory by $362M QoQ, days on hand improved to 98 days. 
- **Backlog Challenges**: Under pressure due to destocking, but cancellations remain normal. 
- **Demand Creation**: Sequential +5% in demand creation revenues, +20% in design wins. 

**【CFO Financial Details】**
- **Gross Margin**: 10.5% (down 86bps YoY, 32bps QoQ) due to Asia mix shift. 
- **Operating Expenses**: SG&A $437M (-6% YoY, -2% QoQ). Operating margin 2.8%. 
- **Cash Flow**: $338M from operations, debt reduced by $385M. 
- **Share Buybacks**: $51M in Q2, $515M remaining under authorization. 
- **Q3 Guidance**: Sales $5.05B-$5.35B (down 6%-11% QoQ). EPS $0.65-$0.75. 

**【Key Q&A Themes】**
1. **Market Cycle Timing**: Phil expects potential recovery in H2 FY2025, but caution due to prolonged destocking. 
2. **Gross Margin Outlook**: Ken notes 75% of Q2 margin decline due to Asia mix, but sees stabilization as mix normalizes. 
3. **Inventory Management**: Targeting gradual reduction while maintaining strategic investments. 
4. **Farnell Turnaround**: Operating margin improved to 1% (vs. -47bps QoQ), with cost reductions on track. 
5. **Capital Allocation**: Prioritizing dividend ($0.33/share) and buybacks, with M&A potential for high-margin adjacents. 

**【Financial Highlights】**
- **Cash Generation**: $1.2B free cash flow over 4Qs. 
- **Leverage**: 2.9x gross debt, $1.1B undrawn revolver. 
- **Dividend Policy**: Committed to reliable dividend growth. 
- **Share Buybacks**: Aiming to reduce outstanding shares by 5% FY2025. 


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