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Dec 31, 2021

Arrow Electronics Q4 2021 Earnings Report

Reported record fourth-quarter and full-year sales, gross profit, operating income, and earnings per share.

Key Takeaways

Arrow Electronics reported fourth-quarter sales of $9.02 billion, a 7% increase from the previous year. Net income was $371 million, or $5.26 per share, compared to $236 million, or $3.08 per share in Q4 2020. Non-GAAP net income was $379 million, or $5.37 per share.

Fourth-quarter earnings per share of $5.26; Non-GAAP earnings per share of $5.37

Global components fourth-quarter sales increased 13 percent year over year.

Global enterprise computing solutions fourth-quarter sales decreased 8 percent year over year.

Returned approximately $250 million through Arrow’s stock repurchase program during the fourth quarter.

Total Revenue
$9.02B
Previous year: $8.45B
+6.6%
EPS
$5.37
Previous year: $3.17
+69.4%
Gross Profit
$1.2B
Previous year: $924M
+29.5%
Cash and Equivalents
$222M
Previous year: $374M
-40.5%
Free Cash Flow
$7.13M
Previous year: $200M
-96.4%
Total Assets
$19.5B
Previous year: $17.1B
+14.6%

Arrow Electronics

Arrow Electronics

Arrow Electronics Revenue by Segment

Forward Guidance

Arrow Electronics anticipates consolidated sales between $8.35 billion and $8.95 billion for Q1 2022. They expect net income per share to be $4.32 to $4.48, and non-GAAP net income per share to be $4.44 to $4.60.

Positive Outlook

  • Consolidated sales of $8.35 billion to $8.95 billion
  • Global components sales of $6.675 billion to $6.975 billion
  • Global enterprise computing solutions sales of $1.675 billion to $1.975 billion
  • Net income per share on a diluted basis of $4.32 to $4.48
  • Non-GAAP net income per share on a diluted basis of $4.44 to $4.60

Challenges Ahead

  • Average tax rate of approximately 23.5%
  • Average diluted shares outstanding of 69 million
  • Interest expense of approximately $35 million
  • Changes in foreign currencies to decrease sales by approximately $160 million
  • Changes in foreign currencies to decrease earnings per share on a diluted basis by $.10

Revenue & Expenses

Visualization of income flow from segment revenue to net income