Avnet Announces Preliminary Results for Fourth Quarter Fiscal Year 2021
Sales and Adjusted Earnings Expected to Exceed Prior Guidance
GAAP EPS Expected to be
Company Plans to Report Fourth Quarter and Fiscal Year 2021 Results on
Commenting on today’s announcement, Avnet Chief Executive Officer
Preliminary fourth quarter results:
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Unaudited, Preliminary Fourth Quarter Results |
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Jun – 21 |
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Change Y/Y |
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Change Q/Q |
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Prior Guidance |
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Sales |
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25.7 |
% |
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6.3 |
% |
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GAAP Operating Income Margin |
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2.3 |
% |
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221 |
bps |
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48 |
bps |
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— |
Adjusted Operating Income Margin(1) |
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2.9 |
% |
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188 |
bps |
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66 |
bps |
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— |
Electronic Components Operating Income Margin |
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3.1 |
% |
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157 |
bps |
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47 |
bps |
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— |
Farnell Operating Income Margin |
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8.3 |
% |
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468 |
bps |
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223 |
bps |
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— |
GAAP Diluted Earnings Per Share |
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35.8 – 47.2 |
% |
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(27.1) – (32.7) |
% |
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— |
Adjusted Diluted Earnings Per Share(1) |
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57.8 – 64.1 |
% |
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36.5 – 41.9 |
% |
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(1) A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.
The projected results in this press release are unaudited and based on management’s review of Avnet’s operating results for the three-month period ended
The company will release the final financial results for the fourth quarter and fiscal year 2021 on
Those who would like to participate in the live call can dial 877-407-8112 or 201-689-8840. A replay of the conference call will be available for 90 days, through
Forward-Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like “believes,” “projected’, “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. You should understand that the following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended
Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.
About Avnet
Avnet is a global electronic components distributor with extensive design, product, marketing and supply chain expertise for customers and suppliers at every stage of the product lifecycle. For the past 100 years, Avnet has helped its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)
Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in
Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company’s operating performance. This is especially the case when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet’s normal operating results or non-cash in nature. Management analyzes operating income and operating expenses without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other.
Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.
Management also believes income tax expense (benefit), net income and diluted earnings (loss) per share adjusted for the impact of the items described above and certain items impacting other income (expense) and income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws including recent tax law changes in the
Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.
Adjusted Operating Income Margin Reconciliation
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Fourth Quarter |
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Fiscal 2021 |
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Preliminary adjusted operating income margin |
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2.9 |
% |
Restructuring, integration and other expenses |
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(0.50 |
)% |
Amortization of intangibles and other |
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(0.10 |
)% |
Preliminary GAAP operating income margin |
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2.3 |
% |
Adjusted Diluted Earnings Per Share Reconciliation
The following table presents the reconciliation of preliminary non-GAAP adjusted diluted earnings per share to the preliminary GAAP diluted earnings per share for the fourth quarter of fiscal 2021 ended
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Low End of |
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High End of |
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Range |
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Range |
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Preliminary adjusted diluted earnings per share |
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$ |
1.01 |
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$ |
1.05 |
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Restructuring, integration and other expenses (net of tax) |
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(0.21 |
) |
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(0.21 |
) |
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Amortization of intangibles and other (net of tax) |
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(0.04 |
) |
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(0.04 |
) |
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Loss on early extinguishment of debt |
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(0.06 |
) |
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(0.06 |
) |
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Income tax expense adjustments |
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0.02 |
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0.04 |
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Preliminary GAAP diluted earnings per share |
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$ |
0.72 |
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$ |
0.78 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210720006126/en/
Investor Relations Contacts
Joseph.Burke@avnet.com
Media Relations Contact
Jeanne.Forbis@Avnet.com
Source: Avnet