PHOENIX - Avnet (NASDAQ: NASDAQ:AVT), a global technology solutions provider, has named Rebeca Obregon as the new president of its subsidiary Farnell, effective from July 1, 2024. Farnell is known for its role as a high-service distributor of electronic components and has a significant presence in the international supply chain.
Rebeca Obregon's appointment comes after her tenure as senior vice president of Strategic Business Engagements and Supplier Management at Avnet. In this role, she oversaw the company's United, Velocity and Integrated business units, as well as IP&E (interconnect, passive and electromechanical) supplier management and strategy. Her responsibilities also extended to mergers and acquisitions.
Phil Gallagher, CEO of Avnet, expressed confidence in Obregon's leadership, emphasizing her proven track record and dedication to delivering results for suppliers, customers, partners, and employees. Gallagher highlighted that Farnell is integral to Avnet's success and its value proposition to stakeholders.
With over three decades of experience in the semiconductor industry, Obregon has been recognized for building and expanding teams and businesses into profitable global market leaders. Prior to her role at Avnet, which she joined in 2023, she served as a corporate vice president at Amkor (NASDAQ:AMKR) Technology. Obregon's academic credentials include a Bachelor of Science in electrical engineering from Arizona State University and a Master of Science in electrical engineering from the National Technological University.
In her statement, Obregon acknowledged Farnell's distinguished history in component distribution and expressed her eagerness to collaborate with teams across Farnell and Avnet to support customers throughout the product life cycle.
Avnet has been a cornerstone in the technology distribution and solutions sector for a century, positioning itself at the center of the technology value chain. The company prides itself on assisting customers from the ideation phase through design and production, helping to expedite the design and supply processes to achieve faster revenue realization.
This leadership change is based on a press release statement and reflects Avnet's ongoing strategy to maintain its leadership in the distribution of electronic components and technological solutions.
In other recent news, Avnet, a global distributor of electronic components, reported its third-quarter financial results for fiscal year 2024. The company announced sales of $5.7 billion and an adjusted operating margin of 3.6%, generating a robust $500 million in cash flow from operations. Avnet's focus on reducing inventory levels and improving working capital management contributed to these results, with a projected return to industry-wide growth in 2025.
Simultaneously, Truist Securities adjusted its stance on Avnet by reducing the price target on the company's stock to $48.00 from the previous $49.00. This adjustment followed Avnet's recent financial disclosure, where first-quarter results fell slightly short of market expectations, and the second-quarter outlook was more significantly below consensus due to cyclical challenges. Truist Securities also revised its earnings per share estimate for Avnet for fiscal year 2025, lowering it to $6.33 from the earlier projection of $7.06.
These recent developments indicate that while Avnet faces some challenges, the company's robust cash flow and strategic focus on inventory management and working capital demonstrate its adaptability amidst a challenging business environment. The company's future expectations include sequential growth in the Asia region and a return to industry-wide growth in 2025, as indicated by analyst firms such as Truist Securities.
InvestingPro Insights
As Avnet (NASDAQ: AVT) welcomes Rebeca Obregon as the new president of its subsidiary Farnell, the company's financial health and market performance provide valuable context for stakeholders. Avnet's commitment to leadership in the electronic components distribution sector is reflected in its financial metrics and market position. With a market capitalization of $4.74 billion and a price-to-earnings (P/E) ratio of 8.41, Avnet is a significant player in the industry. The company's P/E ratio, which slightly adjusted to 8.49 for the last twelve months as of Q3 2024, indicates a valuation that may appeal to value-oriented investors. Moreover, Avnet's dividend yield of 2.36% underscores its shareholder return policy, which is further bolstered by its record of raising dividends for 12 consecutive years, an InvestingPro Tip that signals a strong commitment to returning value to shareholders.
Despite a revenue decline of 6.09% over the last twelve months as of Q3 2024, Avnet's gross profit margin stands at 11.89%, demonstrating its ability to maintain profitability. Additionally, the company's low price volatility, as highlighted by an InvestingPro Tip, suggests a level of stability in its stock price, which could be a reassuring factor for risk-averse investors. Avnet's recent performance shows a 13.92% one-year price total return, reflecting a positive trend over the past year. For those interested in further insights and tips, InvestingPro offers additional perspectives on Avnet, including 14 more InvestingPro Tips available at https://www.investing.com/pro/AVT. To gain access to these valuable insights, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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