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Apr 02, 2022

Arrow Electronics Q1 2022 Earnings Report

Arrow Electronics reported record sales, gross profit, operating income, and earnings per share.

Key Takeaways

Arrow Electronics reported first-quarter 2022 sales of $9.07 billion, an increase of 8 percent from sales of $8.39 billion in the first quarter of 2021. First-quarter net income was $365 million, or $5.31 per share on a diluted basis. Non-GAAP net income was $373 million, or $5.43 per share on a diluted basis.

First-quarter sales increased 8 percent year over year.

First-quarter net income was $365 million, or $5.31 per share on a diluted basis.

First-quarter non-GAAP net income was $373 million, or $5.43 per share on a diluted basis.

Company repurchased approximately $250 million of shares for the fourth consecutive quarter.

Total Revenue
$9.07B
Previous year: $8.39B
+8.2%
EPS
$5.43
Previous year: $2.84
+91.2%
Gross Profit
$1.21B
Previous year: $930M
+29.8%
Cash and Equivalents
$243M
Previous year: $228M
+6.6%
Free Cash Flow
-$220M
Previous year: -$24.7M
+788.2%
Total Assets
$19.5B
Previous year: $16.2B
+20.6%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Consolidated sales of $9.04 billion to $9.64 billion, with global components sales of $7.29 billion to $7.59 billion, and global enterprise computing solutions sales of $1.75 billion to $2.05 billion. Net income per share on a diluted basis of $5.32 to $5.48, and non-GAAP net income per share on a diluted basis of $5.48 to $5.64.

Positive Outlook

  • Consolidated sales of $9.04 billion to $9.64 billion
  • Global components sales of $7.29 billion to $7.59 billion
  • Global enterprise computing solutions sales of $1.75 billion to $2.05 billion
  • Net income per share on a diluted basis of $5.32 to $5.48
  • Non-GAAP net income per share on a diluted basis of $5.48 to $5.64

Challenges Ahead

  • Average tax rate of approximately 23.5 percent compared to the long-term range of 23 to 25 percent
  • Expecting average USD-to-Euro exchange rate of $1.08 to €1
  • Changes in foreign currencies to decrease sales by approximately $300 million
  • Changes in foreign currencies to decrease earnings per share on a diluted basis by $.20 compared to the second quarter of 2021
  • Interest expense of approximately $36 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income