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Apr 03, 2021

Arrow Electronics Q1 2021 Earnings Report

Reported record first-quarter sales, operating income, net income and earnings per share.

Key Takeaways

Arrow Electronics reported first-quarter 2021 sales of $8.39 billion, a 31 percent increase from the previous year. First-quarter net income was $206 million, or $2.72 per share, compared to $50 million, or $0.61 per share in the first quarter of 2020.

First-quarter sales increased by 31% year over year, reaching $8.39 billion.

Net income for the first quarter was $206 million, or $2.72 per share.

Global components sales increased by 42% year over year.

Global enterprise computing solutions sales increased by 6% year over year.

Total Revenue
$8.39B
Previous year: $6.38B
+31.4%
EPS
$2.84
Previous year: $0.97
+192.8%
Gross Profit
$930M
Previous year: $728M
+27.7%
Cash and Equivalents
$228M
Previous year: $201M
+13.3%
Free Cash Flow
-$24.7M
Previous year: $439M
-105.6%
Total Assets
$16.2B
Previous year: $15.4B
+5.1%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics anticipates consolidated sales between $8.1 billion and $8.7 billion for the second quarter of 2021. Net income per share is expected to be $2.67 to $2.83, with non-GAAP net income per share estimated at $2.82 to $2.98.

Positive Outlook

  • Consolidated sales of $8.1 billion to $8.7 billion
  • Global components sales of $6.3 billion to $6.6 billion
  • Global enterprise computing solutions sales of $1.8 billion to $2.1 billion
  • Net income per share on a diluted basis of $2.67 to $2.83
  • Non-GAAP net income per share on a diluted basis of $2.82 to $2.98

Challenges Ahead

  • Average tax rate of approximately 23 percent
  • Average diluted shares outstanding of 75 million
  • Interest expense of approximately $33 million
  • Expecting average USD-to-Euro exchange rate of $1.18 to €1
  • Changes in foreign currencies to increase sales by approximately $150 million, and earnings per share on a diluted basis by $.08 compared to the second quarter of 2020

Revenue & Expenses

Visualization of income flow from segment revenue to net income