Why electronics supplier Avnet added 12% after the report?

Electronic components’ supplier Avnet, Inc. (AVT) has published a report for the third quarter of fiscal year 2022. It caused the growth of AVT quotes by 12%, to $43.82 at auction on April 28. The market capitalization was $4.38 billion. In the last quarter ended April 2, Avnet’s revenue grew by 32% year-on-year and by 11% sequentially, to $6.5 billion.

Adjusted earnings per diluted share were $2.15, operating margin of the electronic components segment increased to 4.4%. The company returned $25.6 million in dividends to shareholders, increasing them by 23.8%. The financial data caused optimism among investors, as the company increased its operating margin for the fifth consecutive quarter due to increased sales in the Americas.

Problems with competitors’ supply chains allowed Avnet to attract new customers and increase profits. In the fourth quarter of the fiscal year ending July 2, Avnet expects sales of $6–$6.4 billion and adjusted earnings per share of $1.9–$2. Avnet is a company with a long (about 100 years) history in the technology market. Currently, the company is a major distributor of semiconductors, various connectors, electromechanical modules, and many other components.

The company offers a set of logistics services and the organization of supply chains for sustainable production. Avnet also takes part in the design of electronics and helps to pass the stage from engineering sketches to the launch of large-scale production. Avnet’s business is divided into several large subsidiary brands, each of which is engaged in a separate direction. For example, Avnet Silica specializes in the supply of semiconductors and to support their design processes.