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 ...

Arrow Electronics, Inc (NYSE:ARW) Q3 2023 Earnings Call Transcript November 2, 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 Joe Quatrochi - Wells Fargo Ruplu Bhattacharya - Bank of America Toshiya Hari - Goldman Sachs Operator Good day, and welcome to the Arrow Electronics Third Quarter 2023 Earnings Call. Today's confere ...

[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 ...

Arrow Electronics, Inc. (NYSE:ARW) Q1 2023 Earnings Conference Call May 4, 2023 1:00 PM ET Company Participants Raj Agrawal - Senior Vice President & Chief Financial Officer Anthony Bencivenga - Vice President-Investor Relations Sean Kerins - President & Chief Executive Officer Conference Call Participants Matt Sheerin - Stifel Joe Quatrochi - Wells Fargo Ruplu Bhattacharya - Bank of America Toshiya Hari - Goldman Sachs William Stein - Truist Securities Operator Hello, and thank you for standing by. My nam ...

Sales and Market Dependence - In 2022, sales of semiconductor products and related services represented approximately 60% of the company's consolidated sales, showing a trend of 60%, 57%, and 54% over the past three years[58]. - Approximately 65% of the company's sales in 2022 originated from international operations, indicating a significant reliance on non-U.S. markets[62]. - Sales of semiconductor products represented approximately 60% of the company's consolidated sales in 2022, indicating a significant reliance on this market[58]. Supply Chain and Operational Risks - The company faces risks from a limited number of suppliers, with one supplier accounting for approximately 13% of consolidated sales in 2022, which could adversely affect business if supplier relationships change[56]. - The global semiconductor shortages have led to increased non-cancellable orders from suppliers, limiting the company's ability to adjust inventory levels during market downturns[55]. - The company is vulnerable to supply chain disruptions, particularly due to semiconductor shortages, which could adversely affect financial results[55]. - A substantial portion of the company's inventory is purchased from suppliers with non-exclusive agreements, which can be cancelled on short notice, increasing operational risk[55]. Financial Performance and Economic Conditions - The company's revenues are subject to fluctuations due to cyclical demand in the semiconductor industry, which could impact profitability during economic downturns[58]. - Economic uncertainty, including impacts from the COVID-19 pandemic and geopolitical events, could disrupt the company's access to capital and financial markets[97]. - Global economic weakness and uncertainty may lead to decreased net revenue and increased expenses, affecting financial performance[107]. - The company's ability to generate cash from operations is subject to various external factors, including economic conditions and market demand[96]. - The company may incur impairment charges on goodwill or identifiable intangible assets if their fair values decline below carrying values[102]. - Future economic conditions, including interest rate increases and tax rate changes, could necessitate impairment charges, affecting consolidated balance sheets and operations[103]. Competitive Environment - The company operates in a highly competitive environment, facing pricing and margin pressures from both large multinational competitors and smaller specialized firms[59]. - The company's gross margins in the Asia/Pacific region are generally lower than in other markets, which could negatively impact overall consolidated gross margins if sales in this region increase[66]. - The company faces competitive pressures from both large multinational and smaller specialized competitors, which could lead to pricing and margin reductions[59]. Regulatory and Compliance Risks - The company is exposed to risks associated with changes in tax laws and policies, which could materially impact its effective tax rate and financial results[67]. - Non-compliance with export and import regulations could result in significant penalties, including fines and restrictions on export capabilities, adversely affecting the company's operations[85]. - Environmental laws and regulations may impose liabilities on the company for contamination, which could lead to unexpected costs and operational disruptions[88]. - The company may be liable for environmental remediation costs related to properties it owns or operates, which could impact its financial condition[88]. - The effectiveness of internal controls is critical; weaknesses could lead to inaccurate financial reporting and potential sanctions from regulatory authorities[104]. Geopolitical Risks - The ongoing conflict between Ukraine and Russia may adversely affect the company's operations and financial condition due to export restrictions and sanctions imposed by various countries[77]. - The company is actively monitoring the conflict in Ukraine to assess its impact on its business and its relationships with vendors, suppliers, and customers[78]. - The ongoing conflict between Ukraine and Russia has led to sanctions and export restrictions that could adversely affect the company's operations and financial condition[77]. Cybersecurity and Technology Risks - Cyber security incidents, including ransomware attacks, could lead to significant legal, regulatory, and financial exposure, damaging the company's reputation and increasing operational costs[79][80]. - Cybersecurity incidents could result in significant legal and financial exposure, damaging the company's reputation and operations[79]. - The company is subject to rapid technological changes and must continuously innovate to meet customer expectations, impacting its sales and earnings growth[72]. Financial Position and Debt Management - As of December 31, 2022, the company had cash and cash equivalents of $176.9 million and access to a committed revolving credit line of $2.0 billion[96]. - The company had $1.2 billion in outstanding borrowings under its North American asset securitization program as of December 31, 2022[96]. - The company may face increased financing costs or restrictions due to covenants in existing debt agreements, impacting its operational flexibility[99]. - The company may incur higher financing expenses and face additional restrictions under new external financing arrangements[99]. - Any increase in the company's debt level or deterioration in operating results could lead to a reduction in its current debt ratings[98]. - The backlog of tariff drawback applications has resulted in slow refunds from the U.S. government, potentially impacting the company's business[84]. Employee and Internal Risks - The company faces risks related to employee misconduct, which could lead to legal or regulatory sanctions and harm its reputation[94]. - The company relies heavily on its internal information systems, and any failure could materially impact its business operations[76]. - The lack of long-term sales contracts means the company is vulnerable to order cancellations and delays, which could adversely affect its business[61].

Arrow Electronics, Inc. (NYSE:ARW) Q4 2022 Results Conference Call February 2, 2023 1:00 PM ET Company Participants Richard Seidlitz - VP Corporate Controller and Chief Accounting Officer Sean Kerins - President and CEO Rajesh Agrawal - SVP and CFO Conference Call Participants Ruplu Bhattacharya - Bank of America Matt Sheerin - Stifel Jim Suva - Citigroup William Stein - Truist Securities Joe Quatrochi - Wells Fargo Operator Good day. My name is Rob, and I will be your conference operator today. At this tim ...