Arrow Electronics
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Arrow Electronics met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Revenue details
Arrow Electronics booked revenue of $4.96 billion. The 10 analysts polled by S&P Capital IQ hoped for revenue of $5.01 billion on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $5.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.02. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.99 per share. GAAP EPS of $0.94 for Q3 were 18% lower than the prior-year quarter's $1.15 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 13.4%, 30 basis points worse than the prior-year quarter. Operating margin was 3.3%, 90 basis points worse than the prior-year quarter. Net margin was 2.1%, 40 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $5.38 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $20.38 billion. The average EPS estimate is $4.38.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 195 rating the stock outperform, and 11 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Arrow Electronics a green thumbs-up, and four 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 $42.38.
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