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Avnet 1Q adj. profit to come in well below outlook

PHOENIX -- Electronic parts and computer products distributor Avnet said Wednesday that its fiscal first-quarter adjusted earnings are expected to come in well below its previous forecast and revenue near the lower end of its guidance.

The company's stock fell more than 10 percent in premarket trading.

Avnet Inc. said its earnings for the period ended Sept. 29, excluding restructuring costs and other charges, will likely range between 52 and 58 cents per share. The company previously predicted adjusted earnings between 78 and 88 cents per share.

The company said its quarterly revenue will be about $5.85 billion. Avnet's prior guidance was for revenue between $5.8 billion and $6.4 billion.

Analysts surveyed by FactSet had expected earnings of 83 cents per share on revenue of $6.06 billion.

Avnet said its performance was hurt by lower-than-expected revenue, particularly from its technology solutions segment; weaker profit margins in the Western regions and a bigger-than-expected shift in sales for its electronics marketing segment. The company says the electronics marketing segment had better sales in Asia, which has lower profit margins, while sales for the higher-margin Western regions softened.

Shares of Avnet dropped $3.07, or 10.8 percent, to $25.50 before the market opened.