What is Avnet's gross profit margin?

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

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

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

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

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

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

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

- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

AVT

AVT fundamentals

You can ask Aime