Avnet, Inc. (NASDAQ:AVT) shares traded lower Wednesday after the company reported third-quarter results.
The company reported adjusted earnings per share of $1.10, missing the street view of $1.11.
Avnet reported quarterly sales of $5.654 billion, missing the analyst consensus of $5.707 billion.
"In the third quarter, we delivered results that were in line with our expectations, amidst economic softness and lower demand in the markets we serve," said Avnet Chief Executive Officer Phil Gallagher.
Avnet reported a quarterly operating income margin of 3.4%, compared with 4.8% in the prior year quarter.
Electronic Components operating margin of 4.1% fell 91 bps year over year. Electronic Components (EC) sales in the quarter slumped by 13.4% year over year, while Farnell sales fell 10.4%.
In the third quarter, Americas sales fell 18.2% year over year, EMEA sales fell 14.2%, while Asia sales decreased 8.7%.
Avnet generated $415.7 million in cash flow from operations during nine months and returned $28 million in dividends to shareholders during the quarter.
"I am proud of our team's effort to deliver robust cash flow from operations as the benefits from our countercyclical balance sheet started to take effect this quarter," Gallagher added.
Outlook: Avnet expects fourth-quarter sales of $5.20 billion-$5.50 billion versus the estimate of $5.74 billion. The company projects fourth-quarter EPS of $0.90-$1.00.
Price Action: AVT shares are trading lower by 2.74% to $47.53 at last check Wednesday.