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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.
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 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
- Changes in foreign currencies to increase sales by approximately $110 million, and earnings per share on a diluted basis by $.07 compared to the fourth quarter of 2019
Revenue & Expenses
Visualization of income flow from segment revenue to net income