PHOENIX – Digital parts distributor Avnet Inc . (NASDAQ:) reported fiscal first quarter outcomes that exceeded analyst expectations, whereas offering blended steering for the present quarter.

Avnet posted adjusted earnings per share of $0.92 for the quarter ended September 28, 2024, beating the analyst consensus estimate of $0.86. Income got here in at $5.6 billion, above the $5.43 billion analysts had been anticipating.

Nevertheless, the corporate’s gross sales declined 11.6% YoY from $6.34 billion in the identical quarter final yr. Avnet attributed the income drop to “uneven market circumstances” however famous a return to development in its Asia area.

“Regardless of uneven market circumstances, our workforce continues to function successfully, and I need to thank them for his or her execution and for sustaining collaborative relationships with our prospects and suppliers,” stated Avnet CEO Phil Gallagher.

For the fiscal second quarter, Avnet expects income between $5.4 billion and $5.7 billion, with the midpoint of $5.55 billion according to analyst estimates. Nevertheless, the corporate’s EPS steering of $0.80 to $0.90 falls in need of the $1.02 consensus.

Avnet stated it’s centered on enhancing efficiency in its Farnell enterprise, which noticed working revenue margin drop to simply 0.5% in Q1 in comparison with 4.2% a yr in the past. The corporate generated $106 million in working money movement and returned almost $100 million to shareholders by way of share repurchases in the course of the quarter.

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