The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arrow Electronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins were steady.
Arrow Electronics reported revenue of $5.40 billion. The eight analysts polled by S&P Capital IQ predicted revenue of $5.26 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.22. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.08 per share. GAAP EPS of $1.62 for Q4 were 5.2% higher than the prior-year quarter's $1.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.1%, 60 basis points worse than the prior-year quarter. Operating margin was 3.4%, 110 basis points worse than the prior-year quarter. Net margin was 3.2%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $4.84 billion. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $20.67 billion. The average EPS estimate is $4.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 185 members out of 197 rating the stock outperform, and 12 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 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 $40.71.
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