Avnet Shares Increase After Q1 Earnings, Higher Q2 Guidance

Phoenix-based Avnet earned $139 million, or 90 cents per diluted share, on $6.43 billion in revenue for the first fiscal quarter ended Oct. 1. Analysts had projected earnings of 91 cents per share on $6.43 billion in sales.

In the year-ago quarter, Avnet earned $138.2 million, or 90 cents per share, on sales of $6.18 billion.

"Our team delivered a strong Q1 performance despite a challenging macro environment. After seven consecutive quarters of strong year-over-year growth, our business slowed this quarter as pro forma revenue was roughly flat year over year in constant currency," said Rick Hamada, Avnet CEO, in a statement. "

Avnet shares were trading at $32.17 Thursday morning, up $1.55, or 5.1 percent. The Dow Jones and Nasdaq indices were up 2.1 and 2.3 percent, respectively, Thursday morning.

Avnet Technology Solutions reported sales of $2.61 billion, a 1.9 percent increase compared to the year-ago quarter. Avnet Technology Solutions sales in the Americas fell 5.0 percent and EMEA sales fell 3.6 percent. Sales in Asia increased 51.4 percent.

For the current second fiscal quarter, Avnet expects total sales of between $6.45 billion and $7.15 billion, with Technology Solutions accounting for $3 billion to $3.4 billion, and diluted earnings per share in the range of $1.01 to $1.09. Analysts are predicting earnings of $1.01 per share on $6.74 billion in revenue for the second quarter.