Avnet’s Investor Day in New York started on a distinguished note as CEO Phil Gallagher rang the NASDAQ Opening Bell alongside members of Avnet’s executive management team.
The ringing of the Opening Bell was broadcast across major business networks, including CNBC, Fox Business News and Bloomberg TV.
At the Investor Day Avnet’s senior management team updated medium-term (3 – 4 years) targets including:
- Growth in higher margin revenue with a path to sustainable operating margins of greater than 5% for total Avnet
- Higher margin businesses expanding to contribute greater than 50% of total gross profit:
- Farnell growth expansion targeting annual revenue of $3 billion with 10-15% operating margins
- Embedded growth targeting annual revenue of $1 billion with 10%+ operating margin
- Interconnect, passive and electomechanical business growth targeting annual revenues of $5.5 billion with annual CAGR of 8% to 10%.
Avnet also announced adoption of a new share repurchase plan to repurchase up to a total of $600 million of shares, which includes remaining amounts under prior authorisations, and will discuss detailed capital allocation priorities moving through 2022 and beyond.
The event also included a customer and supplier panel that discussed industry trends and the value of Avnet’s role as a vital link at the center of the supply chain.