Avnet beats Wall Street expectations to close out its 2022 fiscal year
Avnet, Inc. (Nasdaq: AVT) announced its fourth quarter and full year results on Wednesday, with figures ahead of Wall Street expectations.
Sales for the fourth quarter ended July 2 notched $6.37 billion, up 21.9% from the same period last year and ahead of analyst expectations of $6.26 billion.
Adjusted earnings per share for the quarter reached $2.07, outpacing the consensus estimate of $1.98.
Shares fell nearly 4% in after market trading following the results announcement. Avnet’s share price is up nearly 13% year-to-date. Click here to follow the stock.
For the full year Avnet recorded sales of $24.3 billion, an increase of 24.5% compared to last year. The company also reported record diluted earnings per share for the year at $6.94.
Avnet is a technology distributor and in a Wednesday call with analysts CEO Phil Gallagher compared the company to a control tower, offering its customers an expansion view of the technology supply chain.
“As we head into fiscal year 2023, we see opportunity for Avnet to leverage and build upon the value of its demand creation capabilities, supply chain services, embedded products, and Farnell offerings,” Gallagher said, referencing the British company Avnet acquired in 2016.
“There has never been a greater need for global distributors, and we remain confident in our ability to meet those opportunities.”
The company expects to make between $6.2 and $6.5 billion in the next quarter. Executives also said they believe supply chain issues will persist through the end of this year.
Avnet has customers in all different end markets, including industrial, automotive, transportation, aerospace, defense and more.
Wednesday’s earnings call was the last for CFO Tom Liguori, who is retiring next month. Liguori will be replaced by Ken Jacobson who has worked at Avnet for nearly a decade.