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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.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Geographic Location
Revenue by Geographic Location
Americas Components Revenue
CapyFin.comAsiaPacific Components Revenue
CapyFin.comEMEA Components Revenue
CapyFin.comAmericas ECS Revenue
CapyFin.comEMEA ECS Revenue
CapyFin.com 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