Thursday, Avnet, Inc. (AVT) reported a profit in the second quarter attributable to the absence of non-cash goodwill and other intangible asset impairment charge during the quarter, which caused a loss in the year-ago period.
Net income for the quarter was $103.85 million or $0.68 per share, compared with a loss of $1.20 billion or $7.99 per share in the year-ago period.
According to the company, the prior-year was hurt by a non-cash goodwill and other intangible asset impairment charge of $1.315 billion.
Excluding the non-cash impairment charge and certain items, net income for the current year second quarter was $100.5 million or $0.66 per share, compared with net income of $95.0 million or $0.63 per share last year.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.59 per share Analysts' estimates typically exclude special items.
Sales for the quarter increased to $4.83 billion from $4.27 billion in the year-ago period. The quarters revenue represented an increase of 13.2% over the second quarter fiscal 2009 and 10.0% excluding the impact of changes in foreign currency exchange rates. On a pro forma or organic basis, revenue was up 9.6% over the prior year second quarter.
Nine Wall Street analysts estimated a revenue of $4.55 billion for the quarter.
Segment-wise, Electronic Marketing sales increased to $2.51 billion from $2.26 billion a year-ago and Technology Solutions sales increased to $2.31 billion from $2.00 billion in the year-ago period.
According to the company, the cost of sales for the second quarter increased to $4.28 billion from $3.73 billion a year-ago. Selling, general and administrative expenses increased to $389.60 million from $380.17 million a year-ago. However, there were no impairment charges during the quarter, compared with impairment charges of 1.34 billion a year-ago.
Year-to-date net income increased to $154.74 million or $1.01 per share, compared with a loss of $1.11 billion or $7.40 per share a year-ago. Year-to-date sales increased to $9.19 billion from $8.76 billion in the year-ago period.
Looking ahead to the third quarter the company said that earnings are expected to be in the range of $0.53 to $0.61 per share and consolidated sales are expected to be between $4.10 billion and $4.70 billion. Analysts' consensus is $0.52 per share on revenue of $4.31 billion.
AVT is currently trading at $26.98, down $0.88 or 3.16%, on a volume of 1.8 million shares on the New York Stock Exchange. In the after hours the stock traded down $0.08 or 0.30%.
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