- Arrow Electronics‘ fourth quarter adjusted earnings per share (EPS) stood at $2.97, surpassing expectations of $2.63, although this was a decline from $3.98 year-over-year (y/y).
- The company reported sales of $7.28 billion for the quarter, a decrease of 7.2% y/y, but exceeding the estimated $7.06 billion.
- Global components sales were reported at $4.81 billion, down 15% y/y but slightly above the estimate of $4.77 billion.
- In the Americas, components sales reached $1.60 billion, a 10% reduction y/y, yet exceeding the anticipated $1.55 billion.
- Asia components sales amounted to $1.95 billion, representing a 10% decline y/y and falling short of the $2.03 billion estimate.
- Europe components sales came in at $1.26 billion, a significant 25% drop y/y, although higher than the expected $1.19 billion.
- Gross profit was reported at $803.3 million, a decline of 19% y/y, underperforming against the estimate of $822.7 million.
- Mr. Kerins highlighted that despite challenges in the industrial and transportation markets, the company saw positive indicators in its global components business.
- The company concluded the quarter with performance within typical seasonal expectations across all regions.
- Analyst ratings include 2 buys, 5 holds, and 1 sell recommendation for the company.
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Arrow Electronics on Smartkarma
Analysts on Smartkarma have been closely following Arrow Electronics, a key player in electronic components and enterprise computing solutions. Baptista Research highlighted the company’s strategic focus on expanding into IT-as-a-Service & Hybrid Cloud Solutions to drive growth. In their report, they emphasized Arrow Electronics‘ resilience and performance amidst market volatility, with impressive third-quarter earnings of $6.8 billion and non-GAAP EPS of $2.38. Baptista Research sees these moves as major growth accelerators for the company.
Furthermore, Value Investors Club discussed Arrow Electronics‘ role in distributing cheap electronic components and high-value semiconductors, such as GPUs, to global value-added resellers. With a vast network of 600 suppliers and 210,000 customers, Arrow Electronics simplifies the supply chain process and aggregates customer demand effectively. This report, published three months ago, sheds light on the company’s significance in the semiconductor and IT hardware/software space, positioning it as a key player in the industry.
A look at Arrow Electronics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Analysts utilizing Smartkarma Smart Scores have assessed Arrow Electronics‘ long-term outlook based on key factors. With a strong Value score indicating favorable pricing metrics, Arrow Electronics is positioned well in terms of attractiveness for investors seeking undervalued opportunities. However, the company’s Dividend score is lower, suggesting limited returns for income-focused investors.
Moreover, Arrow Electronics received moderate scores in Growth, Resilience, and Momentum, indicating a promising but not overly aggressive growth potential, stable performance during turbulent times, and steady market momentum. Overall, with a balanced outlook across different factors, Arrow Electronics appears to be a solid choice for investors looking for a blend of value and growth in the electronic components distribution sector.
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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