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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.
Revenue by Geographic Location
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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