Arrow Electronics' Q3 Earnings Beat Estimates, Revenues Fall Y/Y

Core Insights - Arrow Electronics reported third-quarter 2024 adjusted earnings of $2.38 per share, exceeding the Zacks Consensus Estimate by 6.73$6.82 billion, down 14.78% from the previous year, yet still surpassing the Zacks Consensus Estimate by 1.21% [1] Revenue Breakdown - Global Component sales fell 20.8% year over year to $4.9 billion, primarily due to a prolonged semiconductor inventory correction, with EMEA revenues declining 35.1$1.87 billion, with revenue growth in America and EMEA at 1.6% and 13.17%, respectively [4] Operating Income and Margins - Non-GAAP operating income for Arrow Electronics decreased 43.3% to $215 million, with a non-GAAP operating margin shrinking by 150 basis points to 3.2$248 million, an increase from $213 million in the previous quarter, while long-term debt decreased to$2.36 billion from $2.48 billion [6] - Arrow generated$80.55 million in cash from operating activities during the quarter [6] Shareholder Returns - In the third quarter, Arrow returned $50 million to shareholders through share repurchases, with approximately$375 million remaining under its current share repurchase authorization [7] Fourth-Quarter Guidance - For the fourth quarter of 2024, Arrow expects sales between $6.67 billion and$7.27 billion, with Global Components sales projected between $4.5 billion and$4.9 billion, and Global ECS sales anticipated between $2.17 billion and$2.37 billion [8] - Interest expenses are expected to range from $60 million to$65 million, with projected non-GAAP earnings per share between $2.48 and$2.68 [8] Currency Impact - The company anticipates that changes in foreign currencies will have an immaterial effect on fourth-quarter sales and earnings [9]