Avnet Q2 Profit Falls, Revenue Tops View - Quick Facts

(RTTNews) - Avnet, Inc. (AVT), a distributor of electronic components, enterprise computer and storage products, Thursday said profit for the second quarter declined from the prior year, despite a significant growth in revenues that topped estimates.

Net income for the quarter fell to $124.9 million from $137.5 million in the previous year. Earnings per share fell to $0.89 from $0.99.

Adjusted earnings per share totaled $1.17, while it was $1.05 last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.

Sales jumped 10.8 percent to $7.422 billion from $6.70 billion in the prior year. Wall Street expected revenues of $6.97 billion.

According to the company, strong demand for IT infrastructure in its TS Americas region and continued growth in the Asia components business drove revenue above its expectations at both operating groups.

Rick Hamada, Chief Executive Officer, commented, "We are encouraged by the overall progress in our financial performance this quarter as we exceeded our original expectations for both revenue and earnings while also experiencing continued momentum in our year-over-year organic growth.''

For the third quarter, adjusted earnings per share is expected to be in the range of $1.02 to $1.12 per share. Avnet sales are projected to be between $6.6 billion and $7.2 billion.

Analysts look for earnings of $1.03 per share on revenues of $6.62 billion.