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Dec 31, 2020

Arrow Electronics Q4 2020 Earnings Report

Arrow Electronics reported record fourth-quarter sales, net income, and earnings per share.

Key Takeaways

Arrow Electronics reported a strong fourth quarter with sales of $8.45 billion, a 15% increase year-over-year. Net income was $236 million, or $3.08 per share, compared to $112 million, or $1.36 per share in Q4 2019. Non-GAAP net income was $243 million, or $3.17 per share, compared to $181 million, or $2.20 per share in the prior year.

Fourth-quarter sales increased 15% year-over-year to $8.45 billion.

Fourth-quarter net income was $236 million, or $3.08 per share.

Fourth-quarter non-GAAP net income was $243 million, or $3.17 per share.

Full-year cash provided by operating activities was $1.36 billion.

Total Revenue
$8.45B
Previous year: $7.34B
+15.2%
EPS
$3.17
Previous year: $2.2
+44.1%
Gross Profit
$924M
Previous year: $823M
+12.2%
Cash and Equivalents
$374M
Previous year: $300M
+24.5%
Free Cash Flow
$200M
Previous year: $495M
-59.6%
Total Assets
$17.1B
Previous year: $16.4B
+4.0%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics provides first-quarter 2021 outlook with consolidated sales between $7.625 billion and $8.225 billion, and non-GAAP net income per share on a diluted basis of $2.17 to $2.33.

Positive Outlook

  • Consolidated sales of $7.625 billion to $8.225 billion.
  • Global components sales of $5.825 billion to $6.125 billion.
  • Global enterprise computing solutions sales of $1.8 billion to $2.1 billion.
  • Net income per share on a diluted basis of $2.02 to $2.18.
  • Non-GAAP net income per share on a diluted basis of $2.17 to $2.33.

Challenges Ahead

  • Average tax rate of approximately 24.5%
  • Interest expense of approximately $31 million
  • Expecting average USD-to-Euro exchange rate of $1.23 to €1
  • Changes in foreign currencies to increase sales by approximately $235 million
  • Earnings per share on a diluted basis by $.12 compared to the first quarter of 2020

Revenue & Expenses

Visualization of income flow from segment revenue to net income