- Arrow Electronics reported an adjusted EPS of $2.43 for Q2, exceeding estimates of $2.07 but down from $2.78 year-over-year (y/y).
- Total sales reached $7.58 billion, marking a 10% increase y/y, surpassing the estimated $7.16 billion.
- Global components sales amounted to $5.28 billion, showing a 5% rise y/y and beating the estimated $5.14 billion.
- Americas components sales were reported at $1.71 billion, experiencing an 8.6% growth y/y, ahead of the $1.66 billion estimate.
- Asia components sales hit $2.15 billion, achieving a 6.5% increase y/y, higher than the $2.07 billion estimate.
- Europe components sales came in at $1.43 billion, a slight decline of 0.9% y/y, but still above the $1.41 billion estimate.
- Gross profit for the quarter was $848.7 million, a minimal increase of 0.3% y/y, and surpassing the estimated $814.6 million.
- Analyst ratings for Arrow Electronics include 1 buy, 3 holds, and 2 sells.
Arrow Electronics on Smartkarma
Arrow Electronics has been under the analyst coverage spotlight on Smartkarma, an independent investment research network. Baptista Research recently published insightful reports shedding light on the company’s performance and outlook.
According to Baptista Research, Arrow Electronics showcased strong results in the first quarter of 2025, with notable performance in cloud and hybrid cloud technologies driving an 18% year-over-year increase in sales for the Enterprise Computing Solutions (ECS) segment. The analyst report also highlighted Arrow’s resilience and strategic focus in navigating challenges in the semiconductor industry, leading to exceeding financial metrics in the fourth quarter of 2024. With a ‘bull’ sentiment and positive outlook, Baptista Research sees potential for future growth and operational efficiency, powering an ‘Outperform’ rating for Arrow Electronics.
A look at Arrow Electronics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Arrow Electronics, Inc. is positioned for a strong long-term outlook, driven by a combination of factors as indicated by the Smartkarma Smart Scores. With a high Momentum score of 5, Arrow Electronics demonstrates a strong ability to generate consistent positive returns over time. Additionally, the Value score of 4 suggests that the company is currently undervalued relative to its intrinsic worth, presenting a potential opportunity for investors. While the Dividend score is lower at 1, indicating a lower level of dividend payment, Arrow Electronics still shows promise in terms of Growth and Resilience, with scores of 3 for both metrics.
Arrow Electronics, Inc. stands out as a distributor of electronic components and computer products to industrial and commercial clients globally. With a diverse product range that includes computer systems, peripherals, software, and mass storage products, the company caters to original equipment manufacturers and commercial customers. The Smartkarma Smart Scores paint a picture of a company with solid momentum, value, and growth prospects, positioning Arrow Electronics favorably for long-term success despite a lower dividend score. Investors may find the company’s resilience and growth potential appealing in the ever-evolving electronics industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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