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Dec 31, 2019
Arrow Electronics Q4 2019 Earnings Report
Arrow Electronics reported a decrease in fourth-quarter sales and net income compared to the same period last year.
Key Takeaways
Arrow Electronics reported Q4 2019 sales of $7.34 billion, a 7% decrease year-over-year. Net income was $112 million, or $1.36 per share, compared to $231 million, or $2.63 per share in Q4 2018.
Fourth-quarter sales decreased by 7% year-over-year.
Net income for the fourth quarter was $112 million, or $1.36 per share.
Global components sales decreased by 10% year-over-year.
Global enterprise computing solutions sales decreased by 2% year-over-year.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Segment
Forward Guidance
Arrow Electronics provided its outlook for the first quarter of 2020, anticipating consolidated sales between $6.225 billion and $6.625 billion and diluted earnings per share between $0.99 and $1.29.
Positive Outlook
- Consolidated sales of $6.225 billion to $6.625 billion
- Global components sales of $4.55 billion to $4.75 billion
- Global enterprise computing solutions sales of $1.675 billion to $1.875 billion
- Earnings per share on a diluted basis of $.99 to $1.29
- Earnings per share on a diluted basis, excluding certain items of $1.29 to $1.39 per share
Challenges Ahead
- Delays and extended lead times of products manufactured in China due to business and transportation shutdowns
- Extension of the New Year Holiday week mandated by the Chinese government
- Uncertainty regarding the situation in China
- Potential impacts to the first-quarter outlook that are not currently quantifiable
- First quarter of 2020 will close on the March 28, 2020, two days earlier than the first quarter of 2019, which is expected to negatively impact sales by approximately $225 million, and earnings per share on a diluted basis by approximately $.11
Revenue & Expenses
Visualization of income flow from segment revenue to net income