Arrow Electronics Q4 2022 Earnings Report
Key Takeaways
Arrow Electronics reported strong fourth-quarter results with sales of $9.32 billion, a 3% increase year over year. Net income was $349 million, or $5.66 per share, while non-GAAP net income was $351 million, or $5.69 per share. The company also announced an additional $1 billion share repurchase authorization.
Fourth-quarter sales increased by 3% year over year to $9.32 billion.
Fourth-quarter earnings per share (EPS) reached $5.66, while non-GAAP EPS was $5.69.
Global components sales increased by 2% year over year.
Global enterprise computing solutions (ECS) sales increased by 7% year over year.
Arrow Electronics
Arrow Electronics
Arrow Electronics Revenue by Segment
Forward Guidance
Arrow Electronics anticipates consolidated sales between $8.33 billion and $8.93 billion for the first quarter of 2023. The company projects net income per share of $4.24 to $4.44, and non-GAAP net income per share of $4.40 to $4.60.
Positive Outlook
- Global components sales of $6.55 billion to $6.85 billion
- Global enterprise computing solutions sales of $1.78 billion to $2.08 billion
- Net income per share on a diluted basis of $4.24 to $4.44
- Non-GAAP net income per share on a diluted basis of $4.40 to $4.60
- Average tax rate of approximately 23.5 percent compared to the long-term range of 23 to 25 percent
Challenges Ahead
- Changes in foreign currencies to decrease sales by approximately $182 million
- Changes in foreign currencies to decrease earnings per share on a diluted basis by $0.13
- On a constant currency basis, first quarter guidance implies a sequential growth rate range of down 6 percent to up 2 percent for global components when compared to the fourth quarter of 2022
- On a constant currency basis, first quarter guidance implies a sequential growth rate range of down 18 percent to 30 percent for global enterprise computing solutions when compared to the fourth quarter of 2022
- Expecting the average USD-to-Euro exchange rate to be $1.07 to €1 compared to $1.12 to €1 in the first quarter of 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income