Avnet meets guidance but earnings tumble

Electronics distributor Avnet said weakening global market conditions impacted its September quarter earnings.
Electronics distributor Avnet saw its December fiscal quarter earnings and sales decline from year-ago levels. (Avnet)

For its second 2020 fiscal quarter ended December 28, 2019, electronics distributor Avnet posted GAAP earnings per share from continuing operations of 5 cents per share on sales of $4.5 billion, compared with 33 cents per diluted share on sales of $5 billion a year ago.

Non-GAAP adjusted earnings per share totaled 40 cents, compared with $1.04 a year ago. Avnet also reported GAAP operating income of $46.5 million, down from $96.1 million in the year-ago fiscal quarter.

“While our second quarter results reflected the ongoing correction the industry has experienced, we saw good signs of stabilization across key geographies,” said Avnet CEO Bill Amelio. “Meanwhile, our transformation initiatives are helping drive significant cost savings, and our new way of doing business will keep us nimble and better equipped to serve our customers over the long term. This includes growing our electronics components customer and supplier base while continuing to expand our ecosystem and broaden our reach into new areas.”

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RELATED: Avnet meets earnings guidance, projects flat quarter

For the third 2020 fiscal quarter, Avnet is projecting sales of $4.1 to $4.5 billion, with non-GAAP earnings per share of 38 to 48 cents.

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