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Oct 01, 2022

Arrow Electronics Q3 2022 Earnings Report

Reported record sales, gross profit, operating income, and earnings per share.

Key Takeaways

Arrow Electronics reported a strong third quarter in 2022, achieving record sales of $9.27 billion, a 9% increase year-over-year. The company's net income was $342 million, or $5.27 per share, while non-GAAP net income reached $354 million, or $5.45 per share.

Third-quarter sales increased by 9 percent year over year.

Third-quarter net income was $342 million, or $5.27 per share on a diluted basis.

Non-GAAP net income was $354 million, or $5.45 per share on a diluted basis.

The company repurchased $259 million of shares in the third quarter of 2022.

Total Revenue
$9.27B
Previous year: $8.51B
+8.9%
EPS
$5.45
Previous year: $4.04
+34.9%
Gross Profit
$1.19B
Previous year: $1.08B
+10.3%
Cash and Equivalents
$334M
Previous year: $216M
+54.7%
Free Cash Flow
$123M
Previous year: $93.1M
+31.7%
Total Assets
$20.5B
Previous year: $17.4B
+17.6%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics anticipates consolidated sales between $8.95 billion and $9.55 billion for Q4 2022. The company projects net income per share (diluted) to be $5.44 to $5.64, and non-GAAP net income per share (diluted) of $5.60 to $5.80.

Positive Outlook

  • Global components sales of $6.80 billion to $7.10 billion
  • Global enterprise computing solutions sales of $2.15 billion to $2.45 billion
  • Average tax rate of approximately 23.5 percent
  • Average diluted shares outstanding of 62 million
  • Interest expense of approximately $62 million

Challenges Ahead

  • Changes in foreign currencies to reduce year over year growth in sales by $420 million
  • Changes in foreign currencies to reduce year over year diluted EPS by $0.25
  • Changes in foreign currencies to reduce quarter over quarter growth in sales by $100 million
  • Changes in foreign currencies to reduce quarter over quarter diluted EPS by $0.07
  • USD-to-Euro exchange rate for the fourth quarter of 2022 to be $0.98 to €1 compared to $1.14 to €1 in the fourth quarter of 2021

Revenue & Expenses

Visualization of income flow from segment revenue to net income