Avnet beats expected results
Avnet's Q2 earnings beat management's guidance range and were also up 11.3% on a year-over-year basis. Revenues came in at $7.42 billion, up 10.8% from the year-ago quarter.
The year-over-year increase was primarily due to strength in the Asia region. However, the company recorded strong organic growth across its business segments, it says. EMEA sales by Avnet Technology Solutions were down around 3%, however.
On a segmental basis, revenues from Electronics Marketing (EM) grew 13.1% from the year-ago quarter to $4.15 billion and came ahead of management's guided range of $3.80 billion-$4.10 billion. The year-over-year increase was primarily boosted by high-volume fulfillment business in the Asia region. Organic growth was 11.4% year over year.
Revenues from Technology Solutions (TS) grew globally 7.9% from the year-ago quarter to $3.27bn as the US did particularly well. Segmental revenues also came ahead of management's guidance range of $2.85bn-$3.15bn. The year-over-year growth was mainly due to continued strong demand in America and Asia, it says while organic growth was 4.1% year over year.
Guidance was less-than-encouraging due to seasonality in the western regions and below-normal seasonality in the Asia region due to a possible slump in the high volume fulfillment business, it says.