Shares of Avnet Inc. (AVT, Financial) fell 3% after the company posted fourth-quarter results. Revenue declined 7.5% from the prior-year quarter to $4.68 billion, beating estimates by $70 million. Earnings of 95 cents per share fell 6 cents short of estimates.
The GAAP operating margin of was -0.6% and the adjusted operating margin was 3.3%.
“During the fourth fiscal quarter, we generated strong operating cash flow of $335 million and put the cash to work repurchasing stock and paying a dividend, in accordance with our capital allocation strategy,” Chief Financial Officer Tom Liguori said.
Cash flow from operations was $335 million, up from $269 million in the prior-year quarter. Further, the company returned $138 million to shareholders in stock buybacks and dividends.
Looking ahead to the first quarter of fiscal 2020, the company expects revenue to be between $4.4 billion and $4.7 billion and earnings per share in the range of 60 cents to 70 cents.
During the quarter ended June 30, the FPA Capital Fund (Trades, Portfolio) reduced its holding by 48.1% to 149,752 shares, Richard Pzena (Trades, Portfolio) curbed his stake by 2.4% to 7,339,746 shares and Tweedy Browne (Trades, Portfolio) reduced its position by 0.2% to 581,227 shares. On the other hand, Diamond Hill Capital (Trades, Portfolio) boosted its stake by 4.4% to 1,028,180 shares.
Shares of DXC Technology Co. (DXC, Financial) tumbled more than 30% on Friday after announcing first-quarter results. The company posted earnings of $1.74 per share on $4.89 billion in revenue, a 7.4% year-over-year decline. The company beat earnings estimates by 3 cents and surpassed revenue expectations by $30 million.
Adjusted earnings before interest and taxes was $652 million, down from $803 million last year. The adjusted Ebit margin declined 190 basis point to 13.3% from 15.2% in the year-ago quarter.
By segment, GBS revenue was $2.16 billion, up from $2.2 billion, while the profit margin was 17%, down from 18.2%.
In the Global Infrastructure Services segment, revenue was $2.73 billion compared with $3.07 billion in the prior year. The profit margin was 12.4%, down from 15.4%.
During the quarter ended June 30, Wallace Weitz (Trades, Portfolio) boosted his holding by 24.3% to 768,500 shares.
Disclosure:The author holds no position in any stocks mentioned.
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