Arrow Electronics Q3 revenue beats estimates, helped by AI demand
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
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(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.)