Avnet Q4 Profit Rises - Update

(RTTNews) - Electronic component distributor Avnet Inc. (AVT), on Wednesday said its fourth-quarter profit surged from a year ago, as sales grew and restructuring costs declined.

Phoenix, Arizona-based Avnet's fourth-quarter profit surged to $186.3 million or $1.33 per share from $126.1 or $0.91 per share a year earlier.

Adjusted earnings increased to $160.1 million or $1.14 per share from $141.8 million or $1.02 per share a year ago.

On average, eleven analysts polled by Thomson-Reuters estimated the company to earn $1.10 for the quarter. Analysts' estimates typically exclude one-time items.

Avnet's sales for the quarter increased 6.9 percent to $7.05 billion from $6.59 billion last year. Analysts had a consensus revenue estimate of $6.94 billion.

Chief Executive Rick Hamada credited revenue growth to stronger-than-expected revenue from its Technology Solutions Americas and Electronics Marketing Asia regions.

Avnet Electronic Marketing unit's sales rose 8.8 percent, with Americas down 10.4 percent, EMEA up 24.1 percent and Asia up 15.2 percent. Avnet Technology Solutions revenues rose 4.2 percent, with sales increasing 12.5 percent in Americas, while EMEA slipped 6.7 percent and Asia dropped 2.3 percent.

Restructuring, integration and other expenses dropped to $28.0 million from $59.8 million a year ago. The company recorded an income tax benefit of $10.6 million, compared to income tax expense of $1.0 million last year.

Looking forward to the first quarter, Avnet expect adjusted earnings of $0.93 to $1.03 per share on sales of $6.40 billion to $7.0 billion. Analysts currently expect earnings of $0.99 per share on sales of $6.76 billion for the quarter.

"While our fourth quarter results showed some encouraging signs in certain end markets, looking ahead to fiscal 2015, I would continue to characterize our overall outlook as mixed in nature." said CEO Rick Hamada.

AVT is currently trading at $43.10, down $0.25 or 0.58%, on the NYSE.