The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arrow Electronics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margins expanded, operating margins were steady, and net margins expanded.
Arrow Electronics logged revenue of $5.44 billion. The 11 analysts polled by S&P Capital IQ expected to see revenue of $5.44 billion. Sales were 3.9% higher than the prior-year quarter's $5.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.38. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.30 per share on the same basis. GAAP EPS of $1.54 for Q4 were 15% higher than the prior-year quarter's $1.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 13.7%, 70 basis points better than the prior-year quarter. Operating margin was 4.5%, about the same as the prior-year quarter. Net margin was 3.2%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.90 billion. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $21.05 billion. The average EPS estimate is $4.81.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 191 members out of 200 rating the stock outperform, and nine members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Arrow Electronics a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arrow Electronics is outperform, with an average price target of $41.35.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.