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Arrow Electronics
🇺🇸 NYSE:ARW
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Jun 27, 2020

Arrow Electronics Q2 2020 Earnings Report

Reported a decrease in sales but an increase in net income compared to the same quarter last year and announced an additional share repurchase program.

Key Takeaways

Arrow Electronics reported second-quarter 2020 sales of $6.61 billion, a 10% decrease year-over-year. However, net income increased to $133 million, or $1.68 per share, compared to a net loss of $(549) million, or $(6.48) per share, in the second quarter of 2019. The company also announced an additional $600 million share repurchase program.

Second-quarter sales were $6.61 billion, a decrease of 10% year over year.

Second-quarter net income was $133 million, or $1.68 per share, compared to a net loss of $(549) million, or $(6.48) per share, in the second quarter of 2019.

Global components second-quarter sales decreased 10% year over year, with Asia-Pacific components sales increasing 7%.

Global enterprise computing solutions second-quarter sales decreased 9% year over year.

Total Revenue
$6.61B
Previous year: $7.35B
-10.1%
EPS
$1.59
Previous year: $1.6
-0.6%
Share Repurchase Program
$600M
Gross Profit
$750M
Previous year: $815M
-7.9%
Cash and Equivalents
$206M
Previous year: $270M
-23.8%
Free Cash Flow
$387M
Previous year: $358M
+8.1%
Total Assets
$15.6B
Previous year: $16B
-2.6%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics provided the following outlook for the third quarter of 2020: Consolidated sales of $6.325 billion to $6.925 billion, with global components sales of $4.675 billion to $4.975 billion, and global enterprise computing solutions sales of $1.65 billion to $1.95 billion. Earnings per share on a diluted basis of $1.34 to $1.50, and earnings per share on a diluted basis, excluding certain items of $1.54 to $1.70 per share.

Positive Outlook

  • Consolidated sales of $6.325B to $6.925B
  • Global components sales of $4.675B to $4.975B
  • Global enterprise computing solutions sales of $1.65B to $1.95B
  • Earnings per share on a diluted basis of $1.34 to $1.50
  • Non-GAAP earnings per share of $1.54 to $1.70

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 78.5 million
  • Interest expense of approximately $33 million
  • Potential adverse effects of the ongoing global coronavirus pandemic
  • Changes in product supply, pricing and customer demand

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Arrow Electronics