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Mar 30, 2024

Arrow Electronics Q1 2024 Earnings Report

Arrow Electronics' first-quarter performance in 2024 was reported, with sales aligning with expectations and non-GAAP EPS exceeding guidance.

Key Takeaways

Arrow Electronics reported first-quarter sales of $6.9 billion, aligning with guidance. The company's earnings per diluted share were $1.53, and non-GAAP earnings per diluted share reached $2.41. The company focused on managing working capital, cost discipline and protecting strategic growth priorities.

Sales of $6.9 billion were in line with guidance.

First-quarter earnings per diluted share were reported as $1.53.

Non-GAAP earnings per diluted share were $2.41, exceeding the high end of the guidance range.

The company generated $403 million in cash flow from operations.

Total Revenue
$6.92B
Previous year: $8.74B
-20.7%
EPS
$2.41
Previous year: $4.6
-47.6%
Gross Profit
$816M
Previous year: $1.11B
-26.7%
Cash and Equivalents
$243M
Previous year: $206M
+18.1%
Free Cash Flow
$374M
Previous year: $204M
+83.5%
Total Assets
$20.3B
Previous year: $20.3B
-0.1%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics anticipates the following for the second quarter of 2024: consolidated sales between $6.20 billion and $6.80 billion, with global components sales of $4.60 billion to $5.00 billion, and global enterprise computing solutions sales of $1.60 billion to $1.80 billion. Net income per share on a diluted basis is projected to be $1.65 to $1.85, with non-GAAP net income per share on a diluted basis of $2.05 to $2.25.

Positive Outlook

  • Consolidated sales are expected to be $6.20 billion to $6.80 billion.
  • Global components sales are projected to be $4.60 billion to $5.00 billion.
  • Global enterprise computing solutions sales are anticipated to be $1.60 billion to $1.80 billion.
  • Net income per share on a diluted basis is forecasted at $1.65 to $1.85.
  • Non-GAAP net income per share on a diluted basis is expected to be $2.05 to $2.25.

Challenges Ahead

  • Changes in foreign currencies are expected to decrease sales by approximately $51 million compared to the second quarter of 2023.
  • Changes in foreign currencies are expected to decrease earnings per share on a diluted basis by $0.04 compared to the second quarter of 2023.
  • Changes in foreign currencies are expected to decrease quarter-over-quarter growth in sales by $29 million compared to the first quarter of 2024.
  • Changes in foreign currencies are expected to decrease earnings per share on a diluted basis by $0.04 compared to the first quarter of 2024.
  • Interest expense is estimated to be approximately $75 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income