Avnet, Inc., announced results for the first quarter ended September 29, 2018.
First Quarter Key Financial Highlights:
- Sales of $5.09 billion rose 9.2% year over year.
- Sales grew 9.9% year over year in constant currency.
- GAAP diluted EPS from continuing operations rose 53.2% to $0.72 year over year.
- Adjusted diluted EPS from continuing operations increased 35.5% to $1.03 year over year.
- GAAP operating income of $146.8 million rose 127.4% year over year.
- Adjusted operating income of $182.5 million rose 33.7% year over year.
- GAAP operating income margin of 2.9%.
- Adjusted operating income margin of 3.6% expanded 66 basis points year over year.
- Net working capital days declined by 1 day to 83 days.
“We are pleased to report the continued positive trend in profitability and growth entering fiscal year 2019,” said Bill Amelio, Chief Executive Officer, Avnet. “With the introduction of Avnet’s new comprehensive ecosystem last year, we have expanded our portfolio of services significantly, which has resulted in first quarter growth among both our existing customers as well as with new and non-traditional customers.”
“Our focus on cost management resulted in a $26.4 million reduction in selling, general, and administrative expenses year over year on a 9.2% growth in revenue. We also took steps to realize greater efficiencies longer term by opening a new distribution center in Hong Kong this quarter,” said Tom Liguori, Chief Financial Officer, Avnet. “We reduced net working capital days and remain on schedule for achieving our long term target of 70 days. We continued implementing our capital allocation strategy by repurchasing 3.3 million shares this quarter, and we increased our quarterly dividend by more than 5% to $0.20 per share for a total return to shareholders of $179.8 million.”