We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Arrow Electronics Inc | NYSE:ARW | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.76 | 0.58% | 131.31 | 131.42 | 129.6171 | 130.72 | 484,412 | 01:00:00 |
-- Sales of $6.9 billion in line with guidance -- -- First-Quarter Earnings Per Diluted Share of $1.53; Non-GAAP Earnings Per Diluted Share of $2.41 --
Arrow Electronics, Inc. (NYSE:ARW) today announced financial results for its first quarter of 2024.
“We continued to execute well in a challenging market environment and delivered first-quarter sales in line with our expectations, with non-GAAP earnings per diluted share above the high end of our guidance range,” said Sean Kerins, Arrow’s president and chief executive officer.
“In the current environment, we’re focused on managing factors within our control including effective use of working capital, appropriate cost discipline, and protecting our strategic growth priorities,” said Mr. Kerins.
Arrow Consolidated
Quarter Ended
March 30,
April 1,
(in millions except per share data)
2024
2023
Consolidated sales
$
6,924
$
8,736
Net income attributable to shareholders
84
274
Net income per diluted share
1.53
4.60
Non-GAAP net income attributable to shareholders (1)
132
274
Non-GAAP net income per diluted share
2.41
4.60
In the first quarter of 2024, sales decreased 21 percent year over year. Changes in foreign currencies had an immaterial impact compared to the first quarter of 2023.
Global Components
“While the industry’s cyclical correction is ongoing, we are beginning to see improvement in leading indicators with customer inventory levels declining, our book-to-bill ratios for both semiconductors and IP&E improving in all regions and our backlog continuing to trend towards more normal levels. From an end-market perspective, we saw relative strength in transportation in the Americas, aerospace and defense in EMEA, and consumer verticals in Asia,” said Mr. Kerins.
Global Components
Quarter Ended
March 30,
April 1,
(in millions)
2024
2023
Global components sales
$
5,191
$
6,856
Global components operating income, as reported
226
418
Global components non-GAAP operating income
243
424
In the first quarter of 2024, global components sales decreased 24 percent year over year. Americas components first-quarter sales decreased 29 percent year over year. Europe components first-quarter sales decreased 26 percent year over year and decreased 27 percent year over year on a constant currency basis. Asia-Pacific components first-quarter sales decreased 18 percent year over year.
Global Enterprise Computing Solutions
“Our enterprise computing solutions business continues to navigate a mixed IT spending environment. In EMEA, we once again achieved year-on-year billings and gross profit dollar growth in the first quarter, and in North America, we continued to make progress in the market for IT-as-a-service. Looking forward we’re well-positioned to serve the growing demand for cloud and AI-driven solutions,” said Mr. Kerins.
Global Enterprise Computing Solutions (ECS)
Quarter Ended
March 30,
April 1,
(in millions)
2024
2023
Global ECS sales
$
1,733
$
1,881
Global ECS operating income, as reported
71
81
Global ECS non-GAAP operating income
73
82
In the first quarter of 2024, global ECS sales decreased 8 percent year over year and decreased 9 percent year over year on a constant currency basis. Europe ECS first-quarter sales decreased 7 percent year over year and decreased 8 percent year over year on a constant currency basis. Americas ECS first-quarter sales decreased 9 percent year over year.
Other Financial Metrics
“In the first quarter, we generated $403 million in cash flow from operations,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer. “Efficient working capital management enabled us to reduce inventory by $390 million in the first quarter and more than $1 billion over the past two quarters. Our strong cash flow generation continued to provide us with ample financial flexibility, and we also repurchased approximately $100 million of shares in the quarter.”
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Second-Quarter 2024 Outlook
Second-Quarter 2024 GAAP to non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
June 29,
July 1,
June 29,
March 30,
(in billions)
2024
2023
% Change
2024
2024
% Change
Global components sales, GAAP
$
4.60 - 5.00
$
6.68
(31%) - (25%)
$
4.60 - 5.00
$
5.19
(11%) - (4%)
Impact of changes in foreign currencies
—
(0.04
)
—
(0.02
)
Global components sales, constant currency
$
4.60 - 5.00
$
6.64
(31%) - (25%)
$
4.60 - 5.00
$
5.17
(11%) - (3%)
Global ECS sales, GAAP
$
1.60 - 1.80
$
1.83
(13%) - (2%)
$
1.60 - 1.80
$
1.73
(8%) - 4%
Impact of changes in foreign currencies
—
(0.01
)
—
(0.01
)
Global ECS sales, constant currency
$
1.60 - 1.80
$
1.82
(12%) - (1%)
$
1.60 - 1.80
$
1.72
(7%) - 4%
NON-GAAP EARNINGS RECONCILIATION
Reported GAAP measure
Intangible amortization expense
Restructuring & integration charges
Non-GAAP measure
Net income per diluted share
$1.65 to $1.85
$0.10
$0.30
$2.05 to $2.25
Earnings Presentation
Please refer to the earnings presentation, which can be found at investor.arrow.com, as a supplement to the company’s earnings release. The company uses its website as a tool to disclose important information about the company and to comply with its disclosure obligations under Regulation Fair Disclosure.
Webcast and Conference Call Information
Arrow Electronics will host a conference call to discuss first-quarter 2024 financial results on May 2, 2024, at 1:00 PM ET.
A live webcast of the conference call will be available via the events section of investor.arrow.com or by accessing the webcast link directly at https://events.q4inc.com/attendee/743613108. Shortly after the conclusion of the conference call, a webcast replay will be available on the Arrow website for one year.
About Arrow Electronics
Arrow Electronics guides innovation forward for thousands of leading technology manufacturers and service providers. With 2023 sales of $33 billion, Arrow develops technology solutions that help improve business and daily life. Learn more at arrow.com.
Information Relating to Forward-Looking Statements
This press release includes “forward-looking” statements, as the term is defined under the federal securities laws, including but not limited to statements regarding: Arrow’s future financial performance, including its outlook on financial results for the second quarter of fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, and expectations regarding market demand and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information; outbreaks, epidemics, pandemics, or public health crises; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.
Certain Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, gross profit, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interests, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization, restructuring, integration, and other charges; net gains and losses on investments; and impact of wind down to inventory. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For further discussion of our non-GAAP measures and related adjustments, refer to the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
Quarter Ended
March 30, 2024
April 1, 2023
Sales
$
6,924,260
$
8,736,428
Cost of sales
6,066,434
7,622,606
Gross profit
857,826
1,113,822
Operating expenses:
Selling, general, and administrative
583,326
642,431
Depreciation and amortization
41,727
46,679
Restructuring, integration, and other
46,856
2,560
671,909
691,670
Operating income
185,917
422,152
Equity in losses of affiliated companies
(344
)
(80
)
Gain on investments, net
98
10,311
Employee benefit plan expense, net
(933
)
(853
)
Interest and other financing expense, net
(79,604
)
(79,658
)
Income before income taxes
105,134
351,872
Provision for income taxes
22,036
76,547
Consolidated net income
83,098
275,325
Noncontrolling interests
(503
)
1,575
Net income attributable to shareholders
$
83,601
$
273,750
Net income per share:
Basic
$
1.54
$
4.66
Diluted
$
1.53
$
4.60
Weighted-average shares outstanding:
Basic
54,251
58,731
Diluted
54,815
59,479
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
(Unaudited)
March 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
242,810
$
218,053
Accounts receivable, net
11,062,608
12,238,073
Inventories
4,797,053
5,187,225
Other current assets
798,591
684,126
Total current assets
16,901,062
18,327,477
Property, plant, and equipment, at cost:
Land
5,691
5,691
Buildings and improvements
196,291
195,579
Machinery and equipment
1,624,409
1,632,606
1,826,391
1,833,876
Less: Accumulated depreciation and amortization
(1,309,303
)
(1,303,136
)
Property, plant, and equipment, net
517,088
530,740
Investments in affiliated companies
58,868
62,741
Intangible assets, net
119,274
127,440
Goodwill
2,054,536
2,050,426
Other assets
612,048
627,344
Total assets
$
20,262,876
$
21,726,168
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
8,940,313
$
10,070,015
Accrued expenses
1,474,605
1,463,915
Short-term borrowings, including current portion of long-term debt
945,698
1,653,954
Total current liabilities
11,360,616
13,187,884
Long-term debt
2,632,250
2,153,553
Other liabilities
500,672
507,424
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2024 and 2023
Issued - 57,955 and 57,691 shares in 2024 and 2023
57,955
57,691
Capital in excess of par value
565,166
553,340
Treasury stock (4,725 and 3,880 shares in 2024 and 2023, respectively), at cost
(405,663
)
(297,745
)
Retained earnings
5,873,818
5,790,217
Accumulated other comprehensive loss
(392,130
)
(298,039
)
Total shareholders’ equity
5,699,146
5,805,464
Noncontrolling interests
70,192
71,843
Total equity
5,769,338
5,877,307
Total liabilities and equity
$
20,262,876
$
21,726,168
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended
March 30, 2024
April 1, 2023
Cash flows from operating activities:
Consolidated net income
$
83,098
$
275,325
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization
41,727
46,679
Amortization of stock-based compensation
13,447
19,497
Equity in losses of affiliated companies
344
80
Deferred income taxes
(2,801
)
(7,530
)
Loss (gain) on investments, net
13
(10,311
)
Other
1,189
1,321
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net
1,057,676
1,701,889
Inventories
362,813
(199,521
)
Accounts payable
(1,077,786
)
(1,504,701
)
Accrued expenses
21,053
(132,316
)
Other assets and liabilities
(97,563
)
33,392
Net cash provided by operating activities
403,210
223,804
Cash flows from investing activities:
Acquisition of property, plant, and equipment
(29,535
)
(20,114
)
Other
5,139
10,867
Net cash used for investing activities
(24,396
)
(9,247
)
Cash flows from financing activities:
Change in short-term and other borrowings
(709,675
)
(146,050
)
Proceeds from long-term bank borrowings, net
477,032
34,360
Net proceeds from note offering
—
498,600
Redemption of notes
—
(300,000
)
Proceeds from exercise of stock options
2,929
5,934
Repurchases of common stock
(87,948
)
(303,801
)
Net cash used for financing activities
(317,662
)
(210,957
)
Effect of exchange rate changes on cash
(36,395
)
25,039
Net increase in cash and cash equivalents
24,757
28,639
Cash and cash equivalents at beginning of period
218,053
176,915
Cash and cash equivalents at end of period
$
242,810
$
205,554
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
March 30, 2024
April 1, 2023
% Change
Consolidated sales, as reported
$
6,924,260
$
8,736,428
(20.7
)%
Impact of changes in foreign currencies
—
9,370
Consolidated sales, constant currency
$
6,924,260
$
8,745,798
(20.8
)%
Global components sales, as reported
$
5,191,417
$
6,855,793
(24.3
)%
Impact of changes in foreign currencies
—
(4,163
)
Global components sales, constant currency
$
5,191,417
$
6,851,630
(24.2
)%
Americas components sales, as reported
$
1,596,692
$
2,233,453
(28.5
)%
Impact of changes in foreign currencies
—
(672
)
Americas components sales, constant currency
$
1,596,692
$
2,232,781
(28.5
)%
Asia components sales, as reported
$
1,938,218
$
2,376,195
(18.4
)%
Impact of changes in foreign currencies
—
(24,636
)
Asia components sales, constant currency
$
1,938,218
$
2,351,559
(17.6
)%
Europe components sales, as reported
$
1,656,507
$
2,246,145
(26.3
)%
Impact of changes in foreign currencies
—
21,145
Europe components sales, constant currency
$
1,656,507
$
2,267,290
(26.9
)%
Global ECS sales, as reported
$
1,732,843
$
1,880,635
(7.9
)%
Impact of changes in foreign currencies
—
13,533
Global ECS sales, constant currency
$
1,732,843
$
1,894,168
(8.5
)%
Americas ECS sales, as reported
$
907,748
$
998,114
(9.1
)%
Impact of changes in foreign currencies
—
(830
)
Americas ECS sales, constant currency
$
907,748
$
997,284
(9.0
)%
Europe ECS sales, as reported
$
825,095
$
882,521
(6.5
)%
Impact of changes in foreign currencies
—
14,363
Europe ECS sales, constant currency
$
825,095
$
896,884
(8.0
)%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Three months ended March 30, 2024
Reported GAAP measure
Intangible amortization expense
Restructuring, Integration and other
Impact of Wind Down(1)
Other(2)
Non-GAAP measure
Gross Profit
$
857,826
$
—
$
—
$
10,459
$
—
$
868,285
Operating income
185,917
7,546
46,856
10,459
—
250,778
Income before income taxes
105,134
7,546
46,856
10,459
(98
)
169,897
Provision for income taxes
22,036
1,879
12,014
2,502
(24
)
38,407
Consolidated net income
83,098
5,667
34,842
7,957
(74
)
131,490
Noncontrolling interests
(503
)
135
—
—
—
(368
)
Net income attributable to shareholders
$
83,601
$
5,532
$
34,842
$
7,957
$
(74
)
$
131,858
Net income per diluted share (3)
$
1.53
$
0.10
$
0.64
$
0.15
$
—
$
2.41
Effective tax rate (4)
21.0
%
22.6
%
Three months ended April 1, 2023
Reported GAAP measure
Intangible amortization expense
Restructuring, Integration and other
Impact of Wind Down
Other(2)
Non-GAAP measure
Gross Profit
$
1,113,822
$
—
$
—
$
—
$
—
$
1,113,822
Operating income
422,152
7,980
2,560
—
—
432,692
Income before income taxes
351,872
7,980
2,560
—
(10,311
)
352,101
Provision for income taxes
76,547
2,010
720
—
(2,471
)
76,806
Consolidated net income
275,325
5,970
1,840
—
(7,840
)
275,295
Noncontrolling interests
1,575
134
—
—
—
1,709
Net income attributable to shareholders
$
273,750
$
5,836
$
1,840
$
—
$
(7,840
)
$
273,586
Net income per diluted share (3)
$
4.60
$
0.10
$
0.03
$
—
$
(0.13
)
$
4.60
Effective tax rate (4)
21.8
%
21.8
%
_________________________
(1)
Includes write downs of inventory related to the wind down of a business.
(2)
Other includes gain on investments, net.
(3)
The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.
(4)
The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
March 30, 2024
April 1, 2023
Sales:
Global components
$
5,191,417
$
6,855,793
Global ECS
1,732,843
1,880,635
Consolidated
$
6,924,260
$
8,736,428
Operating income (loss):
Global components (a)
$
225,562
$
417,539
Global ECS
71,459
81,099
Corporate (b)
(111,104
)
(76,486
)
Consolidated
$
185,917
$
422,152
(a)
Global components operating income includes charges of $10.5 million in inventory write downs related to the wind down of a business.
(b)
Corporate operating income (loss) includes restructuring, integration, and other charges of $46.9 million and $2.6 million for the first quarter of 2024 and 2023, respectively. Restructuring, integration, and other charges for the first quarter of 2024 include charges of $42.8 million related to termination of personnel as a part of operating expense reduction initiatives.
NON-GAAP SEGMENT RECONCILIATION
Quarter Ended
March 30, 2024
April 1, 2023
Global components operating income, as reported
$
225,562
$
417,539
Intangible assets amortization expense
6,488
6,745
Impact of wind down to inventory
10,459
—
Global components non-GAAP operating income
$
242,509
$
424,284
Global ECS operating income, as reported
$
71,459
$
81,099
Intangible assets amortization expense
1,058
1,235
Global ECS non-GAAP operating income
$
72,517
$
82,334
View source version on businesswire.com: https://www.businesswire.com/news/home/20240502414194/en/
Investors: Brad Windbigler, Treasurer and Vice President, Investor Relations 720-654-9893
Media: John Hourigan, Vice President, Public Affairs and Corporate Marketing 303-824-4586
1 Year Arrow Electronics Chart |
1 Month Arrow Electronics Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions