Arrow Electronics Q2 2024 Earnings Report
Key Takeaways
Arrow Electronics reported second-quarter sales of $6.89 billion, exceeding guidance. The company's GAAP earnings per diluted share was $2.01, and non-GAAP earnings per diluted share was $2.78. The company generated $320 million in cash flow from operations and repurchased $50 million in shares.
Second-quarter sales reached $6.9 billion, surpassing expectations.
Earnings per diluted share were reported at $2.01, while non-GAAP earnings per diluted share amounted to $2.78.
Global components sales decreased 25 percent year over year.
Global ECS sales increased 2 percent year over year.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Segment
Forward Guidance
Arrow Electronics anticipates for Q3 2024 consolidated sales between $6.37 billion and $6.97 billion, with global components sales between $4.70 billion and $5.10 billion, and global enterprise computing solutions sales between $1.67 billion and $1.87 billion. Net income per share on a diluted basis is projected to be $1.70 to $1.90, and non-GAAP net income per share on a diluted basis is expected to be $2.10 to $2.30.
Positive Outlook
- Consolidated sales of $6.37 billion to $6.97 billion
- Global components sales of $4.70 billion to $5.10 billion
- Global enterprise computing solutions sales of $1.67 billion to $1.87 billion
- Net income per share on a diluted basis of $1.70 to $1.90
- Non-GAAP net income per share on a diluted basis of $2.10 to $2.30
Challenges Ahead
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $70 million
- Changes in foreign currencies to increase sales by approximately $7 million, and to have no impact on earnings per share on a diluted basis compared to the third quarter of 2023
- Changes in foreign currencies to increase quarter-over-quarter growth in sales by $30 million
- Changes in foreign currencies to increase quarter-over-quarter earnings per share on a diluted basis by $0.02 compared to the second quarter of 2024
Revenue & Expenses
Visualization of income flow from segment revenue to net income