Arrow Electronics (ARW) reported fourth-quarter 2023 adjusted earnings of $3.98 per share, which beat the Zacks Consensus Estimate by 7.57%. However, the bottom line declined 30% on a year-over-year basis (down 31% in cc) due to lower revenues and unfavorable foreign currency exchange rates.In the fourth quarter, ARW reported revenues of $7.84 billion, down 16% from the year-ago quarter's level (down 31% at cc). The top line beat the Zacks Consensus Estimate by 0.41% due to the adverse impact of foreign exc ...

Arrow Electronics, Inc (NYSE:ARW) Q4 2023 Earnings Call Transcript February 8, 2024 1:00 PM ET Company Participants Anthony Bencivenga - Vice President, Investor Relations Sean Kerins - President and Chief Executive Officer Raj Agrawal - Chief Financial Officer Conference Call Participants Matt Sheerin - Stifel Melissa Fairbanks - Raymond James Joe Quatrochi - Wells Fargo Securities William Stein - Truist Securities Ruplu Bhattacharya - BofA Merrill Lynch Operator Good day, and welcome to Arrow Electronics ...

For the quarter ended December 2023, Arrow Electronics (ARW) reported revenue of $7.85 billion, down 15.8% over the same period last year. EPS came in at $3.98, compared to $5.69 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.82 billion, representing a surprise of +0.41%. The company delivered an EPS surprise of +7.57%, with the consensus EPS estimate being $3.70.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Wall Street analysts forecast that Arrow Electronics (ARW) will report quarterly earnings of $3.70 per share in its upcoming release, pointing to a year-over-year decline of 35%. It is anticipated that revenues will amount to $7.82 billion, exhibiting a decline of 16.2% compared to the year-ago quarter.The current level reflects a downward revision of 2.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised ...

CENTENNIAL, Colo.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW), a global provider of technology solutions, and its engineering services company, eInfochips, have announced the expansion of its Automotive Centre of Excellence (CoE) in Egypt to assist customers in the development of next-gen automotive products. Arrow’s Automotive CoE addresses the opportunities and helps resolve the challenges associated with connected, autonomous and electrification technologies in the automotive industry. The comp ...

The market expects Arrow Electronics (ARW) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if ...

Arrow Electronics (ARW) announced that it is helping its long-time client, Oyika, in rolling out battery charging stations in Southeast Asian cities to enable a new generation of clean and silent electric motorcycles.Arrow has helped Oyika to develop a smart battery exchange system at convenience stores, which is managed with a mobile application. It will help Oyika to replace millions of petroleum-powered motorbikes in less time.Arrow is working on multiple areas of Oyika's integrated solution, such as des ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2023 was $8 billion, down 14% year-over-year or down 15% in constant currency [13] - Non-GAAP diluted EPS for Q3 was $4.14, well above the high end of guidance, including an $0.87 benefit from a legal settlement and a $0.31 negative impact from an accounts receivable reserve [16] - Consolidated gross margin was 12.2%, down 30 basis points sequentially and 60 basis points year-over-year [13][14] Business Line Data and Key Metrics Changes - Global components sales were $6.2 billion, down 14% year-over-year or down 16% in constant currency, primarily due to softness in the Asia market [13] - Enterprise computing solutions sales were $1.8 billion, down 10% year-over-year or down 13% in constant currency, affected by product mix and softness in North America [13] - Global components operating margin was 6.2%, benefiting from a legal settlement, while enterprise computing solutions operating margin was 3.2%, impacted by an accounts receivable reserve [15] Market Data and Key Metrics Changes - Sales were soft across all regions, but there were pockets of strength in the Americas, particularly in design-related activity [9] - In Europe, there was improvement in interconnect, passive, and electromechanical components booking activity [9] - Asia showed relative momentum in transportation, networking, and communications, but a broader recovery is not yet confirmed [9] Company Strategy and Development Direction - The company remains optimistic about long-term growth prospects and is aligning its strategy accordingly [11] - Focus on engineering investments and supply chain services is expected to benefit structural margin health [8] - The company is navigating a cyclical correction in the global components business while maintaining strong supplier and customer relationships [6] Management's Comments on Operating Environment and Future Outlook - Management noted continued market softness but expressed confidence in resilience and ability to navigate challenges [5] - The macro environment could influence the speed of recovery, with expectations for corrections to take two to three quarters to play out [22] - The company anticipates better performance in 2024 as it transitions to a model that aligns with customer mix and demand [11] Other Important Information - Cash flow from operations was $322 million in Q3, with net debt remaining flat at $3.9 billion [18] - The company repurchased approximately $200 million in shares during the quarter, with remaining stock repurchase authorization at $622 million [18] Q&A Session Summary Question: Component guidance and regional expectations - Management indicated that corrections typically take two to three quarters to normalize, with inventory levels being a significant factor [22] Question: Operating margin sustainability - Management expressed confidence in sustaining margins around 5% despite regional mix changes and overall volume shortfalls [25] Question: Accounts receivable reserve reversal potential - Management noted that the reserve was an isolated situation and they are confident in collecting the owed amounts over time [32] Question: Inventory correction duration in the semiconductor market - Management stated that expectations for the duration of the correction have not changed, and inventory levels are expected to decline in Q4 [37] Question: Fourth quarter ECS margins and free cash flow expectations - Management expects typical fourth-quarter performance for ECS margins and continued cash generation in Q4 [41] Question: Pricing environment across different regions - Management noted that pricing remains stable, with some concessions in Asia, but overall input costs are expected to keep upward pressure on pricing [47] Question: Growth of margin-accretive initiatives - Management indicated that demand creation, IP&E, and supply chain services are becoming more material to the overall business mix compared to previous years [49]

[Cover Page](index=1&type=section&id=Cover%20Page) - This is a Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, filed by Arrow Electronics, Inc.[2](index=2&type=chunk) - As of October 26, 2023, there were **54,159,399 shares of Common Stock outstanding**[5](index=5&type=chunk) [Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's Q3 2023 financial statements show sales and net income declines, increased inventories, and improved operating cash flow [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2023, Arrow Electronics reported a **13.6% decrease in sales to $8.01 billion** and a **42.0% drop in net income to $198.7 million**, with diluted EPS falling to **$3.53** Consolidated Statements of Operations Highlights (Q3 & Nine Months) | Metric (In thousands, except per share data) | Q3 2023 | Q3 2022 | % Change | Nine Months 2023 | Nine Months 2022 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Sales** | $8,007,019 | $9,266,432 | -13.6% | $25,257,963 | $27,801,399 | -9.1% | | **Gross Profit** | $979,597 | $1,186,912 | -17.5% | $3,159,468 | $3,630,630 | -13.0% | | **Operating Income** | $340,083 | $502,694 | -32.3% | $1,154,485 | $1,545,898 | -25.3% | | **Net Income Attributable to Shareholders** | $198,659 | $342,399 | -42.0% | $708,968 | $1,077,482 | -34.2% | | **Diluted EPS** | $3.53 | $5.27 | -33.0% | $12.28 | $16.12 | -23.8% | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2023, **total assets were $20.64 billion**, driven by reduced accounts receivable and increased inventories, with **total debt at $4.20 billion** Balance Sheet Key Figures (In thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $17,305,960 | $18,340,340 | | Accounts receivable, net | $10,663,164 | $12,322,717 | | Inventories | $5,805,520 | $5,319,369 | | **Total Assets** | $20,638,360 | $21,763,182 | | **Total Current Liabilities** | $11,936,031 | $12,389,604 | | Accounts payable | $9,090,554 | $10,460,419 | | Short-term borrowings | $1,588,662 | $589,883 | | **Long-term debt** | $2,615,001 | $3,182,964 | | **Total Shareholders' Equity** | $5,485,261 | $5,546,357 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2023, the company generated **$418.7 million in cash from operating activities**, a significant turnaround from the **$141.8 million used in 2022**, primarily due to decreased accounts receivable Cash Flow Summary (Nine Months Ended, In thousands) | Cash Flow Activity | Sep 30, 2023 | Oct 1, 2022 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $418,707 | $(141,764) | | Net cash used for investing activities | $(46,813) | $(33,975) | | Net cash (used for) provided by financing activities | $(214,749) | $455,827 | | **Net increase in cash and cash equivalents** | **$156,379** | **$111,791** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail accounting policies, segment performance, debt structure, and contingencies, highlighting sales declines and a significant legal settlement - **Goodwill totaled $2.02 billion** as of September 30, 2023, with **$869.1 million allocated to Global Components** and **$1.15 billion to Global ECS**[25](index=25&type=chunk) - The company has an EMEA asset securitization program with a capacity of up to **€600.0 million**, under which it sells interests in trade accounts receivable[31](index=31&type=chunk) - In Q1 2023, the company issued **$500.0 million of 6.125% notes due 2026** and repaid **$300.0 million of 4.50% notes due March 2023**[49](index=49&type=chunk) - During Q3 2023, the company received **$62.2 million in settlement funds** related to a capacitor price-fixing lawsuit, recorded as a reduction to SG&A expenses[93](index=93&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **13.6% consolidated sales decrease** in Q3 2023 to declines in both segments, while maintaining strong liquidity Consolidated Sales by Segment (Q3 2023 vs Q3 2022, in millions) | Segment | Q3 2023 Sales | Q3 2022 Sales | % Change | | :--- | :--- | :--- | :--- | | Global components | $6,245 | $7,300 | (14.5)% | | Global ECS | $1,762 | $1,966 | (10.4)% | | **Consolidated** | **$8,007** | **$9,266** | **(13.6)%** | - Global components sales declined due to softer demand in the Americas and Asia/Pacific, while the EMEA region saw growth, with the Americas decline linked to decreased shortage market activity and softer demand in transportation, communications, and computing verticals[117](index=117&type=chunk)[120](index=120&type=chunk) - Global ECS sales decreased due to a product mix shift from hardware to more software and cloud solutions, where a higher proportion of revenue is recognized on a net fee (agency) basis[117](index=117&type=chunk) - Operating expenses decreased, partly due to a **$62.2 million legal settlement**, partially offset by a **$36.8 million increase in the allowance for credit losses** in Q3 2023 compared to the prior year[122](index=122&type=chunk)[115](index=115&type=chunk) - The company believes its current cash, borrowing capacity, and future operating cash flows are sufficient to meet its needs for the next 12 months, with over **$1.9 billion in committed and undrawn liquidity**[138](index=138&type=chunk) - The company repurchased **5.7 million shares for $700.9 million** in the first nine months of 2023, with approximately **$621.6 million remaining available** under the share-repurchase program as of September 30, 2023[154](index=154&type=chunk)[84](index=84&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that there were no material changes in its market risk exposures compared to its 2022 Annual Report on Form 10-K - There were no material changes in market risk for changes in foreign currency exchange rates and interest rates from the information provided in the company's Annual Report on Form 10-K for the year ended December 31, 2022[160](index=160&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective as of September 30, 2023**[162](index=162&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[163](index=163&type=chunk) [Part II. Other Information](index=52&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference information on contingencies and legal matters detailed in Note K of the financial statements - Information regarding legal proceedings is set forth in Note K, "Contingencies," in the Notes to Consolidated Financial Statements[166](index=166&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors from those disclosed in its 2022 Annual Report on Form 10-K - There have been no material changes to the company's risk factors from those discussed in the Annual Report on Form 10-K for the year ended December 31, 2022[167](index=167&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased approximately **1.55 million shares**, with **$621.6 million remaining available** under its **$1.0 billion** authorized program Share Repurchase Activity (Q3 2023) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | July 30 - Aug 26, 2023 | 660,594 | $128.67 | | Aug 27 - Sep 30, 2023 | 892,440 | $128.86 | | **Total** | **1,553,034** | **N/A** | - On January 31, 2023, the Board of Directors approved a **$1.0 billion increase** to the share-repurchase program, with **$621.6 million remaining available** for repurchase as of September 30, 2023[169](index=169&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) The company reports that no directors or officers adopted, amended, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q3 2023 - During the quarter ended September 30, 2023, no directors or officers adopted, amended, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[170](index=170&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including amendments to credit agreements, executive compensation plans, and required certifications - Exhibits filed include an amendment to the EMEA Funding Corp B.V. agreement, forms of executive retention and severance agreements, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[172](index=172&type=chunk) [Signature](index=54&type=section&id=Signature) - The report was signed on **November 2, 2023**, by Rajesh K. Agrawal, Senior Vice President and Chief Financial Officer, and Richard A. Seidlitz, Vice President, Corporate Controller, and Principal Accounting Officer[178](index=178&type=chunk)

Arrow Electronics, Inc (NYSE:ARW) Q2 2023 Earnings Conference Call August 3, 2023 1:00 PM ET Company Participants Anthony Bencivenga - Vice President, Investor Relations Sean Kerins - President and Chief Executive Officer Raj Agrawal - Chief Financial Officer Conference Call Participants Matt Sheerin - Stifel Melissa Fairbanks - Raymond James Joe Quatrochi - Wells Fargo Ruplu Bhattacharya - Bank of America William Stein - Truist Securities Operator Hello. My name is Chris and I’ll be your conference operato ...