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Sep 26, 2020
Arrow Electronics Q3 2020 Earnings Report
Reported an increase in sales and net income compared to the same quarter last year.
Key Takeaways
Arrow Electronics reported a strong third quarter with sales of $7.23 billion, a 2% increase year-over-year. Net income was $166 million, or $2.13 per share, compared to $92 million, or $1.10 per share in the third quarter of 2019. The company's performance was driven by strong demand for its products and solutions, particularly in the Asia-Pacific region.
Third-quarter sales increased by 2 percent year over year to $7.23 billion.
Third-quarter earnings per share were $2.13, compared to $1.10 in the third quarter of 2019.
Global components sales increased 5 percent year over year, with Asia-Pacific components sales increasing 29 percent.
Global enterprise computing solutions sales decreased 5 percent year over year.
Revenue by Geographic Location
Forward Guidance
Arrow Electronics provided its outlook for the fourth quarter of 2020, including consolidated sales of $7.45 billion to $8.05 billion and non-GAAP net income per share on a diluted basis of $2.57 to $2.73.
Positive Outlook
- Consolidated sales of $7.45 billion to $8.05 billion
- Global components sales of $5.1 billion to $5.4 billion
- Global enterprise computing solutions sales of $2.35 billion to $2.65 billion
- Net income per share on a diluted basis of $2.42 to $2.58
- Non-GAAP net income per share on a diluted basis of $2.57 to $2.73
Challenges Ahead
- Average tax rate of approximately 23.5 percent
- Average diluted shares outstanding of 77 million
- Interest expense of approximately $33 million
- Expecting average USD-to-Euro exchange rate of $1.16 to €1
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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