Avnet(AVT) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 sales of $5.7 billion, a 13.2$6.5 billion in the prior year quarter[1][3][5] - Diluted EPS of $0.97, down 52.2$2.03, with adjusted diluted EPS of $1.10, down 45.0$2.00[1][3][5] - Operating income margin of 3.4%, down 145 basis points (bps) YoY from 4.8%, with adjusted operating income margin of 3.6%, down 124 bps YoY[3][5] - Electronic Components operating income margin of 4.1%, down 91 bps YoY from 5.0%[3][5] - Net income for the nine months ended March 30, 2024, was $416,033 thousand, compared to$615,572 thousand for the same period in 2023[17] - Adjusted operating income for the year to date 2024 was $706,610 thousand, compared to GAAP operating income of$680,177 thousand[23] - Adjusted net income for the year to date 2024 was $378,421 thousand, compared to GAAP net income of$416,033 thousand[23] - Adjusted diluted earnings per share for the year to date 2024 was $4.11, compared to GAAP diluted earnings per share of$4.52[23] - GAAP operating income for fiscal year 2023 was $1,186.8 million, with adjusted operating income at$1,220.9 million[24] - Adjusted net income for fiscal year 2023 was $752.8 million, with GAAP net income at$770.8 million[24] - Avnet's sales for the first nine months of fiscal 2024 were $18,194.2 million, with operating income at$680.2 million[27] - Avnet's sales for fiscal year 2023 were $26,536.9 million, with operating income of$1,186.8 million[28] Regional Sales Performance - Americas sales of $1.40 billion, down 18.2$2.05 billion, down 14.2% YoY, and Asia sales of $2.20 billion, down 8.7$4,565.4 million in the Americas, $6,474.7 million in EMEA, and$7,154.1 million in Asia[27] Segment Performance - Farnell sales of $407.8 million, down 10.4$16,972.3 million, with operating income of $737.5 million[27] - Farnell segment sales for the first nine months of fiscal 2024 were$1,221.9 million, with operating income of $49.7 million[27] - Electronic Components segment sales for fiscal year 2023 were$24,802.6 million, with operating income of $1,179.6 million[28] - Farnell segment sales for fiscal year 2023 were$1,734.3 million, with operating income of $165.5 million[28] Cash Flow and Shareholder Returns - Generated$500 million in cash flow from operations, with trailing twelve-month cash flows from operations of $650 million[3] - Returned$28 million to shareholders in dividends during the quarter[3] - Net cash flows provided by operating activities for the nine months ended March 30, 2024, were $415,730 thousand, compared to a net cash outflow of$948,241 thousand for the same period in 2023[17] - The company repurchased $86,027 thousand of common stock during the nine months ended March 30, 2024, compared to$221,282 thousand for the same period in 2023[17] - The company paid $84,154 thousand in dividends on common stock during the nine months ended March 30, 2024, compared to$79,807 thousand for the same period in 2023[17] Guidance and Forecast - Q4 sales guidance range of $5.20 billion to$5.50 billion, with a midpoint of $5.35 billion, implying a sequential decline of 3$0.90 to $1.00, with a midpoint of$0.95[7] - Adjusted diluted earnings per share guidance ranges from $0.90 to$1.00[30] - GAAP diluted earnings per share guidance ranges from $0.80 to$0.85[30] - Restructuring, integration, and other expenses (net of tax) are estimated between $(0.10) and$(0.15)[30] Non-GAAP Financial Measures - The company uses non-GAAP financial measures such as adjusted operating income, adjusted net income, and adjusted diluted EPS to provide a more comparable basis for evaluating performance and forecasting future results[18][20][21] Currency Impact - Foreign currency exchange rate fluctuations had a significant impact on the company's reported results, with a stronger U.S. Dollar decreasing reported results and a weaker U.S. Dollar increasing reported results[19] Cash and Cash Equivalents - The company's cash and cash equivalents decreased by $69,757 thousand to$218,473 thousand at the end of March 30, 2024, compared to $288,230 thousand at the beginning of the period[17]