The 10-second takeaway
For the quarter ended March 30 (Q1), Arrow Electronics met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Margins shrank across the board.
Arrow Electronics logged revenue of $4.85 billion. The 10 analysts polled by S&P Capital IQ predicted a top line of $4.81 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 $0.89. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.88 per share. Non-GAAP EPS of $0.89 for Q1 were 15% lower than the prior-year quarter's $1.05 per share. GAAP EPS of $0.72 for Q1 were 28% lower than the prior-year quarter's $1.00 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 13.2%, 70 basis points worse than the prior-year quarter. Operating margin was 2.8%, 120 basis points worse than the prior-year quarter. Net margin was 1.6%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.08 billion. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $20.55 billion. The average EPS estimate is $4.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 182 members out of 193 rating the stock outperform, and 11 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Arrow Electronics a green thumbs-up, and three 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 $42.70.
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