Avnet, Inc (AVT) reported a net income of $238.1 million or $1.54 per share in the fourth quarter of fiscal 2011, up 69.2% year over year. Adjusted net income was $189.4 million or $1.22 per share compared with a net income of $141.1 million or $0.92 per share in the year-ago quarter. The results surpassed Zacks Consensus Estimate of $1.15 and were towards the high end of the management’s guidance range of $1.10-$1.22.
Quarter in Detail:
Sales came in at $6,912.1 million in the fourth quarter of fiscal 2011, up 32.6% from a year ago. Pro forma revenue (excluding acquisitions/divestitures) grew 13.5% year over year and 8.5% in constant currency. Revenues were within management’s guidance range of $6.60 billion – $7.30 billion.
On a segmental basis, revenues from Electronics Marketing (EM) increased 26.8% from the year-ago quarter to $3.96 billion, within management’s guidance range of $3.85 billion – $4.25 billion.
Revenues from Technology Solutions (TS) improved 41.2% from the year-ago quarter to $2.95 billion, ahead of management’s guidance range of $2.75 billion – $3.05 billion.
Margins: Gross margin declined to 12.0% from 12.6% in the year-ago quarter. Excluding restructuring, integration and other charges, adjusted operating margin was 3.9%, up from 3.85% in the prior quarter. EM operating margin increased 30 basis points from the year-ago quarter to 5.73%. TS operating margins declined to 2.29% from 2.98% in the year-ago quarter.
Cash flow/ Balance Sheet: During the quarter, Avnet generated net cash of $281 million from operations. Avnet ended the quarter with cash and cash equivalents of $675.3 million, down from $782 million in the previous quarter.
For fiscal 2011, Avnet reported $26,534 million, up 38.5% from a year ago. Excluding restructuring, integration and other charges, adjusted operating margin was 3.8%, up from 3.5% in fiscal 2010. Net income came in at $669.0 million or $4.34. Adjusted net income came in at $666.6 million or $4.32 per diluted share.
Guidance: For the first quarter of fiscal 2012, the company projects consolidated sales in the range of $6.25 billion and $6.85 billion. Avnet expects EM sales and TS sales to be in the range of $3.75 billion – $4.05 billion and $2.5 billion – $2.8 billion, respectively. Adjusted EPS is expected in the range of $0.90 – $0.98.
Meanwhile, the Board of Directors of Avnet approved a share repurchase program of $500 million.
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