Avnet Posts Record Sales, Projects Further Growth
Adjusted earnings climbed to $2.28 a share, beating the prior outlook by 48 cents.
Avnet Inc. (AVT), the electronic-components distributor, posted record fiscal fourth-quarter sales of $8.30 billion, up 47.7% from a year earlier as growth strengthened across its regions and businesses.
The gain marked a sharp acceleration from 34% growth in the third quarter and 5.3% at the start of the fiscal year. Sales rose 16.5% sequentially, far exceeding the roughly 5% increase implied by Avnet's previous outlook.
Adjusted diluted earnings rose 181.5% from a year earlier and 54.1% sequentially. GAAP diluted earnings increased to $1.49 a share from $1.14 in the third quarter and 7 cents a year earlier.
Electronic Components drove the advance, with record sales of $7.80 billion, up 49% year over year. Its operating margin widened to 4.1% from 3.5% in the preceding quarter even as gross margin narrowed from a year earlier, reflecting operating leverage below the gross-profit line.
Farnell also reported record sales, rising 29.4% to $500.1 million. Its operating margin increased to 9% from 5.2% sequentially as gross margin expanded 3.9 percentage points from a year earlier.
The Americas led regional growth, with sales climbing 55.3% from a year earlier and 27.6% sequentially. Year-over-year growth reached 43.7% in Europe, the Middle East and Africa and 46.3% in Asia, broadening from much slower growth across all three regions at the start of fiscal 2026.
Adjusted operating margin expanded to 3.8% from 3.1% sequentially, though GAAP operating margin slipped to 2.8% as restructuring, integration and other expenses rose to $86.5 million. For the full fiscal year, operating cash flow swung to a $280.9 million use as higher receivables and inventories absorbed cash despite a corresponding increase in accounts payable.
Avnet expects fiscal first-quarter 2027 sales of $9.00 billion to $9.30 billion and adjusted earnings of $2.80 to $2.90 a share. The midpoints imply sequential growth of about 10% in sales and 25% in adjusted earnings, extending the acceleration into the new fiscal year.