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Mar 28, 2020
Arrow Electronics Q1 2020 Earnings Report
Arrow Electronics reported a decrease in sales and net income for Q1 2020 due to the impact of the COVID-19 pandemic.
Key Takeaways
Arrow Electronics reported first-quarter 2020 sales of $6.38 billion, a decrease of 11% compared to Q1 2019. Net income for the quarter was $50 million, or $0.61 per share, compared to $141 million, or $1.63 per share in the same quarter last year. The company's results were impacted by the COVID-19 pandemic, but they focused on supporting customers and suppliers during the challenging environment.
First-quarter sales decreased by 11% year over year to $6.38 billion.
Net income for the first quarter was $50 million, or $0.61 per share, compared to $141 million, or $1.63 per share in Q1 2019.
Global components sales decreased by 12% year over year to $4.55 billion.
Global enterprise computing solutions sales decreased by 7% year over year to $1.83 billion.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Geographic Location
Revenue by Geographic Location
Americas Components Revenue
CapyFin.comAsiaPacific Components Revenue
CapyFin.comEMEA Components Revenue
CapyFin.comAmericas ECS Revenue
CapyFin.comEMEA ECS Revenue
CapyFin.com Forward Guidance
Arrow Electronics provided the following outlook for the second quarter of 2020:
Positive Outlook
- Consolidated sales of $6.075 billion to $6.675 billion
- Global components sales of $4.4 billion to $4.7 billion
- Global enterprise computing solutions sales of $1.675 billion to $1.975 billion
- Earnings per share on a diluted basis of $0.98 to $1.14
- Earnings per share on a diluted basis, excluding certain items of $1.38 to $1.54 per share
Challenges Ahead
- Average tax rate of approximately 24 percent compared to the long-term range of 23 to 25 percent
- Average diluted shares outstanding of 81 million
- Interest expense of approximately $40 million
- Expect average USD-to-Euro exchange rate of $1.10 to €1
- Potential adverse effects of the ongoing global coronavirus pandemic
Revenue & Expenses
Visualization of income flow from segment revenue to net income