Arrow Electronics (ARW) Reports Q2 Earnings: What Key Metrics Have to Say

Core Viewpoint - Arrow Electronics reported a significant decline in revenue and earnings for the quarter ended June 2024, with revenue at $6.89 billion, down 19.1% year-over-year, and EPS at $2.78, compared to $4.37 in the same quarter last year. However, the revenue exceeded the Zacks Consensus Estimate of $6.51 billion by 5.91%, and EPS surpassed the consensus estimate of $2.16 by 28.70% [1]. Revenue Performance - Americas Components sales were reported at $1.57 billion, exceeding the two-analyst average estimate of $1.49 billion, but reflecting a year-over-year decline of 23.9% [3]. - Europe Components sales were reported at $1.44 billion, slightly below the two-analyst average estimate of $1.47 billion, with a year-over-year decline of 33.2% [4]. - Europe ECS sales were reported at $896.77 million, surpassing the average estimate of $825.01 million, showing a year-over-year increase of 7.9% [5]. - Americas ECS sales were reported at $964.07 million, exceeding the average estimate of $861.50 million, but reflecting a year-over-year decline of 3.6% [6]. - Asia Components sales were reported at $2.02 billion, above the average estimate of $1.85 billion, with a year-over-year decline of 18% [7]. Net Sales and Operating Income - Global ECS net sales were reported at $1.86 billion, exceeding the average estimate of $1.69 billion, with a year-over-year increase of 1.6% [8]. - Global Components net sales were reported at $5.03 billion, surpassing the average estimate of $4.81 billion, but reflecting a year-over-year decline of 24.7% [9]. - Global ECS operating income, as adjusted, was reported at $104 million, exceeding the average estimate of $78.60 million [10]. - Global Components operating income, as adjusted, was reported at $218 million, compared to the average estimate of $202.50 million [11]. Stock Performance - Over the past month, shares of Arrow Electronics have returned +3.4%, outperforming the Zacks S&P 500 composite's +1.1% change, although the stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [11].