Shares of Arrow Electronics Inc. jumped Wednesday after the electronics and computer products distributor posted better-than-expected profit and sales for its second quarter despite the economic downturn.
The company earned $96.2 million, or 79 cents per share, down 3 percent from $99.2 million, or 79 cents per share, in the same period a year ago. The company had fewer outstanding shares in the latest quarter, which increases per-share earnings.
Adjusted earnings, excluding a restructuring and integration charge, were 84 cents per share in the latest quarter.
Revenue rose 9 percent to $4.35 billion from $4.04 billion.
Analysts, on average, were expecting a profit of 77 cents per share on sales of $4.04 billion, according to a poll by Thomson Financial. Analysts typically exclude one-time items from their estimates.
"This quarter's results exceeded our own expectations, driven by strong performance in both global components and global enterprise computing solutions," said William E. Mitchell, chairman and chief executive, in a statement.
Citi Investment Research analyst Jim Suva, who rates Arrow "Buy," said the earnings upside was driven by the higher sales and a better than expected rebound in profitability in the company's computing business as well as lower operating expenses and a lower share count _ offset by modestly higher taxes.
The company forecast third-quarter earnings, excluding items, of 73 cents to 78 cents per share on sales of $4.1 to $4.4 billion.
Analysts expect profit of 72 cents per share on sales of $4.14 billion.
Shares rose $2.61, or 8.6 percent, to $32.93 in late morning trading. In the past 52 weeks, the stock has traded between $26.50 and $44.95.
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