The 10-second takeaway
For the quarter ended June 29 (Q2), Arrow Electronics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share shrank significantly.
Margins shrank across the board.
Arrow Electronics reported revenue of $5.31 billion. The eight analysts polled by S&P Capital IQ anticipated a top line of $5.13 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 $1.12. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.02 per share. Non-GAAP EPS of $1.12 for Q2 were 0.9% higher than the prior-year quarter's $1.11 per share. GAAP EPS of $0.86 for Q2 were 16% lower than the prior-year quarter's $1.02 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 13.0%, 30 basis points worse than the prior-year quarter. Operating margin was 2.9%, 100 basis points worse than the prior-year quarter. Net margin was 1.7%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.07 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $20.66 billion. The average EPS estimate is $4.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 182 members out of 192 rating the stock outperform, and 10 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $43.18.
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