Arrow Electronics Q1 2023 Earnings Report
Key Takeaways
Arrow Electronics reported first-quarter 2023 sales of $8.74 billion, a decrease of 4 percent year over year. First-quarter net income was $274 million, or $4.60 per share on a diluted basis. The company repurchased $300 million of shares during the first quarter.
First-quarter earnings per share were $4.60; non-GAAP earnings per share was $4.60.
Revenue and EPS exceeded the midpoint of guidance.
Global components first-quarter sales were $6.86 billion, a decrease of 5 percent year over year.
Global enterprise computing solutions (ECS) first-quarter sales were $1.88 billion, flat year over year.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Segment
Forward Guidance
Arrow Electronics provided second-quarter 2023 outlook, including consolidated sales of $8.42 billion to $9.02 billion and net income per share on a diluted basis of $4.10 to $4.30.
Positive Outlook
- Consolidated sales of $8.42 billion to $9.02 billion
- Global components sales of $6.64 billion to $7.04 billion
- Global enterprise computing solutions sales of $1.78 billion to $1.98 billion
- Net income per share on a diluted basis of $4.10 to $4.30
- Non-GAAP net income per share on a diluted basis of $4.25 to $4.45
Challenges Ahead
- Average tax rate of approximately 23.5 percent compared to the long-term range of 23 to 25 percent
- Average diluted shares outstanding of 57.95 million
- Interest expense of approximately $90 million
- Changes in foreign currencies expected to increase year-over-year growth in sales by $12 million, not expected to have a significant impact on earnings per share on a diluted basis compared to the second quarter of 2022
- Changes in foreign currencies expected to increase quarter-over-quarter growth in sales by $54 million and earnings per share on a diluted basis by $0.04 compared to the first quarter of 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income