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Jul 01, 2023
Arrow Electronics Q2 2023 Earnings Report
Second quarter results reported with revenue in line with guidance and non-GAAP EPS above midpoint of guidance.
Key Takeaways
Arrow Electronics reported second-quarter 2023 sales of $8.51 billion, a decrease of 10 percent year over year. Second-quarter net income was $237 million, or $4.12 per share on a diluted basis. Non-GAAP net income was $251 million, or $4.37 per share on a diluted basis.
Second-Quarter Earnings Per Share of $4.12; Non-GAAP Earnings Per Share of $4.37
Revenue in line with guidance; Non-GAAP EPS above midpoint of guidance
Global components second-quarter sales of $6.68 billion reflected a decrease of 10 percent year over year.
Global enterprise computing solutions (ECS) second-quarter sales of $1.83 billion reflected a decrease of 8 percent 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
Consolidated sales of $7.78 billion to $8.38 billion, with global components sales of $6.00 billion to $6.40 billion, and global enterprise computing solutions sales of $1.78 billion to $1.98 billion. Net income per share on a diluted basis of $3.25 to $3.45, and non-GAAP net income per share on a diluted basis of $3.40 to $3.60.
Positive Outlook
- Global components sales of $6.00 billion to $6.40 billion
- Global enterprise computing solutions sales of $1.78 billion to $1.98 billion
- Net income per share on a diluted basis of $3.25 to $3.45
- Non-GAAP net income per share on a diluted basis of $3.40 to $3.60
- Changes in foreign currencies expected to increase year-over-year growth in sales by $212 million
Challenges Ahead
- Consolidated sales of $7.78 billion to $8.38 billion
- Average tax rate in the range of 23 to 25 percent
- Average diluted shares outstanding of ~56 million
- Interest expense in the range of $85 million to $90 million
- On a constant currency basis, our third-quarter sales guidance implies a sequential growth rate range of down 11 percent to down 5 percent for global components
Revenue & Expenses
Visualization of income flow from segment revenue to net income