Shares of Arrow Electronics Inc. tumbled Wednesday after the electronics and computer products distributor posted disappointing first-quarter results, hurt by challenging market conditions in its enterprise computing segment.
The company earned $85.9 million, or 69 cents per share, down 11 percent from $96.3 million, or 77 cents per share, in the same period a year earlier. Excluding restructuring charges and other items, Arrow earned $97.9 million, or 79 cents per share, in the latest quarter.
Revenue rose 15 percent to $4.03 billion from $3.5 billion.
Analysts, on average, were expecting a profit of 82 cents per share, excluding items, on sales of $4.08 billion, according to a poll by Thomson Financial.
"The first quarter was a challenging one for us and did not meet all of our expectations," said William E. Mitchell, chairman and chief executive, in a statement.
Arrow's rival, Avnet Inc., recently warned that its March quarter results will fall short of expectations. Citi Investment Research analyst Jim Suva said in an April 16 note that demand from U.S. mortgage and telecom industries is slowing amid the economic slowdown, which hurts electronics distributors. In a Wednesday note, Suva said Arrow's shortfall, driven by weakness in its computing business, led to lower rebate levels from its hardware vendors.
Shares of Melville, N.Y.-based Arrow fell $3.71, or 12 percent, to $27.60 in midday trading. Earlier, the stock hit a 52-week low of $27.17.
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