For the quarter ended September 2024, Arrow Electronics (ARW) reported revenue of $6.82 billion, down 14.8% over the same period last year. EPS came in at $2.38, compared to $4.14 in the year-ago quarter. The reported revenue represents a surprise of +1.21% over the Zacks Consensus Estimate of $6.74 billion. With the consensus EPS estimate being $2.23, the EPS surprise was +6.73%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Arrow Electronics (ARW) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.23 per share. This compares to earnings of $4.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.73%. A quarter ago, it was expected that this electronics maker would post earnings of $2.16 per share when it actually produced earnings of $2.78, delivering a surprise of 28.70%. Over the last four quarters, ...

ARROW ELECTRONICS, INC. 9151 EAST PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000 NEWS Exhibit 99.1 Arrow Electronics Reports Third-Quarter 2024 Results -- Sales of $6.8 billion, at high-end of guidance range -- -- Third-Quarter Earnings Per Diluted Share of $1.88; Non-GAAP Earnings Per Diluted Share of $2.38 -- CENTENNIAL, Colo.--(BUSINESS WIRE)- Oct. 31, 2024--Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its third quarter of 2024. "In the third quarter, the company continued ...

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, i ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tr ...

Luis Alvarez Investment summary My previous investment thoughts on Arrow Electronics (NYSE:ARW) (published on 23 May) was a buy rating, as various indicators have pointed to ARW reaching the end of this cycle. I remain buy-rated as the timing of a recovery cycle is getting increasingly visible and, by my estimate, should happen in 4Q24. 2Q24 results update Released a few days ago, ARW once again reported positive results that support my bullish views on the stock. Total revenue was flattish sequentially, co ...

Core Insights - Arrow Electronics reported second-quarter 2024 adjusted earnings of $2.78 per share, exceeding the Zacks Consensus Estimate by 28.7%, but reflecting a 36.4% decline year-over-year due to lower revenues and unfavorable foreign currency exchange rates [1] - Revenues for the second quarter were $6.89 billion, down 19% from the previous year, yet beating the Zacks Consensus Estimate by 5.91% [1] Second-Quarter Details - Global Component sales decreased 25% year-over-year to $5.03 billion, primarily due to ongoing semiconductor inventory correction, with EMEA revenues down 33%, Americas down 24%, and Asia-Pacific down 18% [2] - Global Enterprise Computing Solutions (ECS) revenues increased 2% year-over-year to $1.86 billion, with a 4% decline in America but an 8% increase in Europe [2] - Non-GAAP operating income for Global Components and Global ECS was $218 million and $104 million, respectively, while overall non-GAAP operating income fell 36% to $262 million, with a non-GAAP operating margin of 3.8% [2] Balance Sheet and Cash Flow - At the end of the second quarter, cash and cash equivalents were $213 million, down from $242.8 million in the previous quarter, while long-term debt decreased to $2.48 billion from $2.63 billion [3] - The company generated $320.18 million in cash from operating activities and returned $50 million to shareholders through share repurchases, with approximately $425 million remaining under its current share repurchase authorization [3] Third-Quarter 2024 Guidance - For the third quarter of 2024, sales are estimated to be between $6.37 billion and $6.97 billion, with Global Components sales projected between $4.7 billion and $5.1 billion, and Global ECS sales anticipated between $1.67 billion and $1.87 billion [4] - Interest expenses are expected to be $70 million, with projected non-GAAP earnings per share in the range of $2.1 to $2.3, and anticipated foreign currency changes to increase sales by $30 million and earnings per share by 2 cents quarter-over-quarter [4] Zacks Rank & Stocks to Consider - Arrow Electronics currently holds a Zacks Rank 4 (Sell) [5] - Other stocks in the Computer and Technology sector with better rankings include DigitalOcean (Rank 1), Shopify and Analog Devices (both Rank 2) [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $6.9 billion, exceeding the high end of guidance and down 19% year-over-year [7][17] - Non-GAAP earnings per share (EPS) for Q2 2024 was $2.78, significantly higher than the guided range [17][19] - Consolidated gross margin was 12.3%, down approximately 20 basis points sequentially and year-over-year [17] - Non-GAAP operating income was $262 million, representing 3.8% of sales [18] Business Line Data and Key Metrics Changes - Global Components segment sales were $5 billion, down 3% sequentially but better than expected [17] - Enterprise Computing Solutions (ECS) sales were $1.9 billion, up 2% year-over-year due to a favorable product mix [17] - Operating margin for Global Components was 4.3%, while ECS margin was 5.6% on a non-GAAP basis [18] Market Data and Key Metrics Changes - In Asia, revenue grew sequentially in semiconductor and IP&E product lines, with notable growth in China [9][10] - The Americas saw a slight decline, but aerospace and defense remained healthy [9] - EMEA markets continued to decline, particularly in industrial and transportation sectors [10] Company Strategy and Development Direction - The company is focused on value-added offerings, including supply chain management and engineering services, to deepen engagement with suppliers and customers [8] - There is an emphasis on investing in strategic priorities while managing costs and working capital [11][15] - The company is positioning itself for future growth cycles, particularly in AI and cloud-related solutions [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about approaching a turning point in core markets, with expectations for stronger performance in the second half of the year [14][15] - The outlook for Q3 indicates typical seasonal patterns, with expectations for stable operating margins [11][22] - Management noted that while conditions are improving, the broader industrial markets remain soft [10][42] Other Important Information - The company reduced net working capital by approximately $150 million in Q2, marking the fourth consecutive quarter of lower net working capital [19][20] - Inventory levels decreased by $140 million from Q1, with a total reduction of $1.2 billion over the last nine months [21] - The company repurchased $50 million of shares in Q2, with a remaining repurchase authorization of approximately $425 million [21] Q&A Session Summary Question: Expectations for stronger second half revenue growth - Management expects better performance in the second half compared to the first half, driven by improvements in the components business and ECS seasonality [25] Question: Specific areas targeted for inventory investments - Management indicated a focus on IP&E as a strategic growth priority while managing working capital carefully [26][27] Question: Revenue guidance for Q4 - Management refrained from providing specific guidance for Q4 but expressed optimism based on improving indicators [32][34] Question: Geo-mix and recovery in China - Management noted sequential growth in Asia, particularly in China, but cautioned that recovery is not V-shaped and remains moderate [38][39] Question: Inventory levels and future demand - Management is confident in the inventory mix and is prepared to invest in areas where demand is expected to improve [44][47] Question: Revenue contribution from AI - Management indicated that while it is too early to quantify AI revenue contributions, they are actively engaged in enabling AI infrastructure [54][55] Question: Drivers for ECS margin growth - ECS margin growth was attributed to business mix, with expectations for normal seasonality impacting margins in Q3 [56] Question: Free cash flow and inventory trends - Management expressed confidence in cash generation capabilities and indicated ongoing investments in inventory as needed [59][63]

Arrow Electronics Earnings Presentation Second Quarter 2024 August 1, 2024 Safe harbor This presentation includes "forward-looking" statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow's future financial performance, including its outlook on financial results for the third quarter of fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to s ...