Avnet beat Wall Street estimates by a penny Wednesday, earning $48.7 million or 40 cents per share for the fourth quarter ended July 3. The results compare to $11.5 million in net income, or 10 cents per share, in the same period last year.
The Phoenix-based distributor reported $2.64 billion in revenue for the fourth quarter, up 21 percent from $2.19 billion in the year-ago quarter.
For the 2004 fiscal year, Avnet earned $72.9 million, or 60 cents per share, compared to a loss of $46.1 million, or a 39-cent loss per share, in fiscal 2003.
Avnet had $10.24 billion in sales in fiscal 2004, a 13 percent increase from $9.05 billion in fiscal 2003.
"The global technology industry recovery gained momentum throughout our fiscal year and we finished with the highest quarterly year-over-year revenue growth rate in over three years," Avnet chairman and CEO Roy Vallee said in a statement. "Fiscal 2004 was a year in which revenue growth combined with operating efficiency to drive a dramatic increase in operating income. Leveraging Avnet's global capabilities to enable the success of our customers and suppliers has allowed us to capitalize on the improved technology market."
Avnet Technology Solutions, which includes single-tier solution provider Avnet Enterprise Solutions and two-tier distributor Avnet Partner Solutions , reported $1.03 billion in sales in the fourth quarter, an 11 percent increase compared to the year-ago quarter. Avnet does not break out individual results for Enterprise Solutions and Partner Solutions, formerly Avnet Hall-Mark.
Avnet expects earnings per share between 30 cents and 35 cents in the first quarter, lower than analysts' consensus of 41 cents per share. Sales are expected to be between $2.55 billion and $2.65 billion, up from $2.41 billion last year but below analysts' expectations of $2.80 billion.
Avnet shares closed at $17.15 Wednesday, down 73 cents per share or 4 percent.