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Arrow Electronics Q3 revenue beats estimates, helped by AI demand

By Reuters News


Overview

  • Technology distributor's Q3 revenue rose 39% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company attributes results to strong demand in both Global Components and ECS segments


Outlook

  • Arrow sees Q4 consolidated sales of $11.55 bln to $12.15 bln

  • Company expects Q4 diluted EPS of $6.25 to $6.45, non-GAAP EPS of $7.00 to $7.20

  • Company expects FX to reduce Q4 sales by about $88 mln and EPS by $0.14 vs year ago


Result Drivers

  • BROAD-BASED DEMAND - Co said Global Components segment saw strong demand across regions, customer segments and industries, with growing backlog and book-to-bill above parity

  • TECH MODERNIZATION - Co said ECS segment benefited from customer investments in AI, cloud, cybersecurity and hybrid infrastructure

  • VALUE-ADDED SERVICES - Co cited focus on expanding higher-margin, value-added services as contributing to results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$10.72 bln

$10.007 bln (4 Analysts)

Q3 Adjusted EPS

Beat

$6.22

$4.97 (4 Analysts)

Q3 EPS

$6.17

Q3 Net Income

$318 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy."

  • Wall Street's median 12-month price target for Arrow Electronics, Inc. is $240.00, about 18.4% above its November 4 closing price of $202.63

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 4 - Avnet Q1 revenue jumps 82%, beats analyst estimates

  • Nov 3 - Navitas Semiconductor Q3 revenue beats estimates on rising demand from AI data centers and grid infrastructure

  • Nov 3 - Arista Networks Q3 revenue beats estimates on strong momentum across customer sectors


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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