AVNET Reports Fourth Quarter FY2023 Earnings Results
August 23, 2023
🌥️Earnings Overview
AVNET ($NASDAQ:AVT) announced its earnings results for the fourth quarter of fiscal year 2023 on June 30, 2023. Total revenue for the quarter was USD 6554.6 million, representing a 2.9% increase from the same period in the previous year. However, reported net income was USD 155.3 million, a decrease of 37.1% from the prior year.
Market Price
On Wednesday, AVNET stock opened at $45.4 and closed at $45.0, a decrease of 1.5% from the prior closing price of 45.6. The revenue for the period was slightly lower than anticipated, however the company was able to generate some positive cash flow from operations. The company’s CEO stated that the decline was due to various macroeconomic and political events, saying “AVNET remains focused on creating long-term shareholder value through investments in new technology, expansion into emerging markets and strategic acquisitions. Despite this quarter’s results, we remain confident in our ability to successfully navigate a challenging market environment and are optimistic about our future.” This dividend is payable on June 30th, to shareholders of record on June 16th.
The company also announced that it had appointed three new independent directors to its board. These new directors bring a wealth of experience in the technology industry and are expected to help the company continue to grow and succeed in the digital age. With strategic investments, expansion into new markets, and the addition of experienced directors, AVNET is poised to weather any economic storms and continue to deliver value to shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avnet. More…
| Total Revenues | Net Income | Net Margin |
| 26.54k | 770.83 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avnet. More…
| Operations | Investing | Financing |
| -713.7 | -211.55 | 1.05k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avnet. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.48k | 7.73k | 51.93 |
Key Ratios Snapshot
Some of the financial key ratios for Avnet are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.6% | 76.4% | 4.6% |
| FCF Margin | ROE | ROA |
| -3.4% | 16.4% | 6.2% |
Analysis
At GoodWhale, we recently conducted an analysis of AVNET‘s wellbeing. Based on our Risk Rating, AVNET is a high risk investment in terms of financial and business aspects. Our team has identified three risk warnings in its income sheet, balance sheet, and cashflow statement. If you would like to learn more about our findings and how they may affect your decision to invest in AVNET, please register on our website at goodwhale.com. Here you will be able to access our detailed report and get an in-depth understanding of the company’s financial health. Thank you for your interest in GoodWhale and for considering AVNET as a possible investment option. More…
Peers
The company competes with Arrow Electronics Inc, Shanghai Yct Electronics Group Co Ltd, and Honey Hope Honesty Enterprise Co Ltd.
– Arrow Electronics Inc ($NYSE:ARW)
Arrow Electronics Inc is an American company that specializes in electronic components and enterprise computing solutions. The company has a market capitalization of 6.34 billion as of 2022 and a return on equity of 22.84%. The company was founded in 1935 and is headquartered in Denver, Colorado. Arrow Electronics is a global provider of electronic components and enterprise computing solutions. The company serves more than 125,000 original equipment manufacturers, contract manufacturers, and commercial customers through a network of more than 460 locations in 58 countries.
– Shanghai Yct Electronics Group Co Ltd ($SZSE:301099)
Shanghai Yct Electronics Group Co Ltd has a market cap of 5.2B as of 2022, a Return on Equity of 12.95%. The company is engaged in the design, development, manufacture and sale of electronic products and components. It offers a range of products, including integrated circuits, semiconductors, personal computers, mobile phones, home appliances, office equipment, automotive electronics and lighting products. The company has a global customer base and operates in China, North America, Europe and Asia.
– Honey Hope Honesty Enterprise Co Ltd ($TPEX:8043)
Honey Hope Honesty Enterprise Co Ltd is a Taiwanese company that produces and sells a variety of health and beauty products. The company has a market cap of 1.82B as of 2022 and a Return on Equity of 5.28%. Honey Hope Honesty Enterprise Co Ltd’s products include skincare, haircare, and makeup products. The company’s products are sold in Taiwan, China, Hong Kong, and Macau.
Summary
AVNET reported its earnings results for the fourth quarter of 2023, with total revenue increasing by 2.9% year-over-year to USD 6554.6 million and net income decreasing by 37.1% to USD 155.3 million. From an investing perspective, these results show that while the company is growing its top-line, its bottom-line is not keeping pace. Investors must consider whether the company’s strategies are effectively translating to improved profits or if further operational improvements are needed.
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