Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

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 ...

Arrow Electronics (ARW) reported second-quarter 2024 adjusted earnings of $2.78 per share, which beat the Zacks Consensus Estimate by 28.7%. However, the bottom line declined 36.4% on a year-over-year basis (down 36% at cc) due to lower revenues and unfavorable foreign currency exchange rates. In the second quarter, ARW reported revenues of $6.89 billion, down 19% from the year-ago quarter's level (down 19% at cc). However, the top line beat the Zacks Consensus Estimate by 5.91%. Second-Quarter Details In t ...

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 ...

For the quarter ended June 2024, Arrow Electronics (ARW) reported revenue of $6.89 billion, down 19.1% over the same period last year. EPS came in at $2.78, compared to $4.37 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $6.51 billion, representing a surprise of +5.91%. The company delivered an EPS surprise of +28.70%, with the consensus EPS estimate being $2.16.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Arrow Electronics (ARW) came out with quarterly earnings of $2.78 per share, beating the Zacks Consensus Estimate of $2.16 per share. This compares to earnings of $4.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.70%. A quarter ago, it was expected that this electronics maker would post earnings of $2.31 per share when it actually produced earnings of $2.41, delivering a surprise of 4.33%.Over the last four quarters, th ...

Sales Performance - Second-quarter 2024 sales reached $6.9 billion, exceeding guidance, with a year-over-year decrease of 19%[1][3] - Sales for the quarter ended June 29, 2024, were $6,892,868, a decrease of 19.1% compared to $8,514,516 for the same quarter in 2023[23] - Consolidated sales for the quarter ended June 29, 2024, were $6,892,868, a decrease of 19.0% compared to $8,514,516 for the same period in 2023[32] - For the six months ended June 29, 2024, consolidated sales were $13,817,128, reflecting a 19.9% decrease from $17,250,944 in the same period of 2023[34] Income and Earnings - Net income attributable to shareholders for the second quarter was $109 million, down from $237 million in the same quarter last year[3] - Consolidated net income attributable to shareholders for the quarter was $108,698, a decrease of 54.0% compared to $236,559 in the prior year[23] - Basic net income per share for the quarter was $2.03, down from $4.17 in the same quarter last year[23] - The company anticipates a net income per share on a diluted basis of $1.70 to $1.90 for the third quarter[17] - The effective tax rate for the quarter was 21.4%, slightly lower than the 22.4% reported in the previous year[35] - The company reported a diluted net income per share of $2.01 for the quarter, down from $4.12 in the same quarter of 2023[35] Operating Performance - Gross profit for the quarter was $846,444, down 20.6% from $1,066,049 in the prior year[23] - Operating income decreased to $212,275, representing a decline of 46.0% from $392,250 in the same quarter last year[23] - Global components operating income for the quarter was $210,201, down from $381,314, a decline of about 44.8%[47] - Global ECS operating income increased to $102,581 from $86,228, marking a growth of approximately 18.9%[47] - Corporate operating loss for the quarter was $(100,507), compared to $(75,292) in the same quarter last year, indicating a worsening of approximately 33.5%[45] Sales by Segment - Global components sales in the second quarter were $5.0 billion, a 25% decrease year-over-year, with EMEA components down 33%[5] - Global components sales reported for the quarter were $5,032,031, down 24.7% from $6,682,882 year-over-year[32] - Americas components sales decreased by 23.9% to $1,572,840 from $2,066,562 in the prior year[32] - EMEA components sales saw a significant decline of 33.2%, falling to $1,439,494 from $2,153,479[32] - Global enterprise computing solutions (ECS) sales increased by 2% year-over-year to $1.9 billion, with EMEA ECS sales up 8%[8] - Global ECS sales for the quarter were $1,860,837, slightly up from $1,831,634 year-over-year, indicating a growth of about 1.2%[43] Cash Flow and Inventory - Cash flow from operations generated in the second quarter was $320 million, allowing for $50 million in share repurchases[9] - The company reduced inventory levels by approximately $140 million in the second quarter, totaling $1.2 billion over the last nine months[9] - Net cash provided by operating activities for the quarter was $320,181, compared to a net cash used of $(126,804) in the same quarter last year[27] Currency Impact - Changes in foreign currencies negatively impacted sales by approximately $52.2 million and earnings per share by $0.05 compared to the second quarter of 2023[3] Restructuring and Charges - The company incurred restructuring and integration charges of $40.5 million for the second quarter of 2024, compared to $10.3 million in the same quarter of 2023, indicating a significant increase in costs[45] - The company recorded charges of $1.6 million and $12.1 million in inventory write-downs related to the wind down of a business for the second quarter and first six months of 2024, respectively[43]