Yahoo Finance Arrow Electronics (ARW) Beats Q4 Earnings & Sales Estimates
Arrow Electronics ARW reported impressive fourth-quarter fiscal 2022 results. The company’s adjusted earnings of $5.69 per share beat the Zacks Consensus Estimate of $5.68. The bottom line improved 6% on a year-over-year basis.
In the fourth quarter of 2022, the company reported revenues of $9.32 billion, up 3% from the year-ago quarter. Excluding the impacts of unfavorable currency exchange rates, sales increased 8%. The top line surpassed the Zacks Consensus Estimate by 1.4%.
Arrow Electronics witnessed strength in demand for electronic components and software, cloud and security solutions in the reported quarter. With the supply-chain constraints improving, the company continued to witness normalization in shortage market activities and was able to capitalize on the growing demand in the fourth quarter.
Arrow Electronics, Inc. Price, Consensus and EPS Surprise
Arrow Electronics, Inc. price-consensus-eps-surprise-chart | Arrow Electronics, Inc. Quote
Fourth-Quarter Details
Adjusted revenues from Global Components increased 2.2% year over year to $6.82 billion. Region-wise, the segment’s revenues from America and Europe jumped 8.9% and 22.8% year over year, respectively. Global Components’ sales in the Asia Pacific region were down 13.8% on a year-over-year basis.
Adjusted revenues from Global Enterprise Computing Solutions (ECS) were $3 billion, up 6.8% year over year. Region-wise, the segment’s revenues from America and Europe increased 3.5% and 11.4%, respectively.
The non-GAAP operating income from Global Components and Global ECS were $449 million and $156 million, respectively.
Arrow Electronics’ non-GAAP operating income jumped 2% to $533.5 million in the fourth quarter of 2022 from the year-ago quarter’s $524.8 million. Non-GAAP operating margin shrunk 10 basis points to 5.7%.
Balance Sheet and Cash Flow
Arrow Electronics exited the fourth quarter with cash and cash equivalents of $176.9 million compared with the previous quarter’s $334 million.
The long-term debt was $3.6 billion, lower than $3.19 billion at the end of the third quarter of 2022.
The New York-based electronic components distributor generated $109 million in cash from operating activities in the reported quarter. In full fiscal 2022, the company utilized $33 million of operating cash flow.
In the fourth quarter of 2022, ARW returned $300 million worth of shares to its shareholders and in fiscal 2022, it returned $1 billion worth of shares to its shareholders through its stock-repurchase program. It has $329 million remaining under its current share-repurchase authorization.
First Quarter Fiscal 2023 Guidance
For the first quarter of 2023, sales are estimated between $8.33 billion and $8.93 billion.
Global Components sales are projected to be $6.55-$6.85 billion. Global ECS sales are anticipated between $1.78 billion and $2.08 billion.
Interest expenses will presumably be $68 million. As a result, the company projects non-GAAP earnings per share of $4.40-$4.60.
Arrow Electronics expects changes in foreign currencies to increase first-quarter sales by $175 million and earnings per share by 11 cents.
Zacks Rank & Key Picks
Arrow Electronics currently carries a Zacks Rank #3 (Hold). Shares of ARW have gained 3.8% in the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Axcelis Technologies ACLS, Bandwidth BAND and Nutanix NTNX. While Axcelis sports a Zacks Rank #1 (Strong Buy), Bandwidth and Nutanix carry Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axcelis’ fourth-quarter 2022 earnings has been revised 41 cents northward to $1.46 per share over the past 30 days. For 2022, earnings estimates have improved by 8.5% to $5.21 per share over the past 30 days.
ACLS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 23.2%. Shares of the company have risen 94.6% in the past year.
The Zacks Consensus Estimate for Bandwidth’s fourth-quarter 2022 earnings has been revised by a penny to 4 cents per share over the past 90 days. For 2022, earnings estimates have moved north by 25 cents to 37 cents per share in the past 90 days.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 55.3% in the past year.
The Zacks Consensus Estimate for Nutanix's second-quarter fiscal 2023 loss has been revised a penny north to 13 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved north by 3 cents to 17 cents per share in the past 90 days.
NTNX’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 86.1%. Shares of the company have jumped 11.7% in the past year.
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