Avnet, Inc. (NYSE:AVT) reported fourth-quarter earnings Wednesday that beat expectations, driven primarily by improved technology markets and record high revenue growth in its electronics division.
The distributor of electronic components, computer products and embedded technology reported GAAP net income of $217 million, or 92 cents, up from a loss of $20.5 million, or 20 cents a share, in the same quarter last year, and landing ahead of average analyst estimates of 80 cents.
Revenue for the Phoenix, Arizona-based company was $5.2 billion, up 38.5% from $3.8 billion a year ago, and beating the Street’s view of $5.02 billion.
Avnet CEO Roy Vallee said the cyclical recovery in the technology markets continued through the quarter, contributing to top-line performance across all of its groups and regions.
The company’s electronics division revenue grew 47%, a new quarterly record, while its technology division grew 25%.
“We enter fiscal 2011 prepared to build on our performance in fiscal 2010 as we begin to integrate the three acquisitions completed in July that we expect will produce at least a 12.5% return on capital employed and create shareholder value,” he said.
The company expects its full year earnings to fall in the range of 76 cents to 84 cents a share.