Arrow Electronics Inc (ARW) Q3 2024 Earnings Call Highlights: Strong Sales and Strategic Growth ...

GuruFocus.com11-01

Total Sales: $6.8 billion, exceeding the midpoint of guidance. Non-GAAP Earnings Per Share (EPS): $2.38, above the guided range. Global Component Sales: $4.9 billion, down 2% from the prior quarter. ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nArrow Electronics Inc (ARW) Q3 2024 Earnings Call Highlights: Strong Sales and Strategic Growth ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 15:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/arrow-electronics-inc-arw-q3-071721108.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Total Sales: $6.8 billion, exceeding the midpoint of guidance.\nNon-GAAP Earnings Per Share (EPS): $2.38, above the guided range.\nGlobal Component Sales: $4.9 billion, down 2% from the prior quarter.\n...</p>\n\n<a href=\"https://finance.yahoo.com/news/arrow-electronics-inc-arw-q3-071721108.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARW","symbol_name":"艾睿","start_time":0,"source_url":"https://finance.yahoo.com/news/arrow-electronics-inc-arw-q3-071721108.html","article_id":"2480020447","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/pQT9YUQDKJMuJ_m2TTAoVg--~B/aD01MDA7dz01MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/74e79041b269ac6d362d014e10476a23"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480020447","pubTimestamp":1730445441,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Total Sales: $6.8 billion, exceeding the midpoint of guidance.Non-GAAP Earnings Per Share : $2.38, above the guided range.Global Component Sales: $4.9 billion, down 2% from the prior quarter.Enterprise Computing Solutions Sales: $1.9 billion, up 7% year-over-year.Consolidated Gross Margin: 11.5%, down 80 basis points sequentially.Non-GAAP Operating Income: $215 million, representing 3.2% of sales.Cash Flow from Operations: $81 million for the quarter, $804 million year-to-date.Net Debt: $3 billion, lower compared to Q2.Share Repurchase: $50 million in Q3, $200 million year-to-date.Q4 Sales Guidance: $6.67 billion to $7.27 billion.GuruFocus has detected 5 Warning Sign with ARW.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Arrow Electronics Inc  exceeded the midpoint of their guidance for both sales and earnings per share, with total sales of $6.8 billion and non-GAAP earnings per share of $2.38.The company's Q4 outlook anticipates a ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ARW":"艾睿"},"translate_title":"Arrow Electronics Inc(ARW)2024年第三季度收益看涨期权亮点：强劲的销售和战略增长……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARW":1},"content_text":"Total Sales: $6.8 billion, exceeding the midpoint of guidance.\nNon-GAAP Earnings Per Share (EPS): $2.38, above the guided range.\nGlobal Component Sales: $4.9 billion, down 2% from the prior quarter.\nEnterprise Computing Solutions Sales: $1.9 billion, up 7% year-over-year.\nConsolidated Gross Margin: 11.5%, down 80 basis points sequentially.\nNon-GAAP Operating Income: $215 million, representing 3.2% of sales.\nGlobal Components Operating Margin: 3.9% (non-GAAP).\nEnterprise Computing Solutions Operating Margin: 4.1% (non-GAAP).\nInterest and Other Expense: $63 million.\nNon-GAAP Effective Tax Rate: 15.9%.\nCash Flow from Operations: $81 million for the quarter, $804 million year-to-date.\nNet Debt: $3 billion, lower compared to Q2.\nShare Repurchase: $50 million in Q3, $200 million year-to-date.\nQ4 Sales Guidance: $6.67 billion to $7.27 billion.\nQ4 Non-GAAP EPS Guidance: $2.48 to $2.68.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with ARW.\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nArrow Electronics Inc (NYSE:ARW) exceeded the midpoint of their guidance for both sales and earnings per share, with total sales of $6.8 billion and non-GAAP earnings per share of $2.38.\nThe company's global ECS business showed solid year-over-year growth, particularly in Europe and North America, driven by demand for hybrid cloud and AI-related solutions.\nArrow Electronics Inc (NYSE:ARW) made positive strides in managing working capital and optimizing cost structures, achieving significant annualized savings.\nThe company is expanding its line card and establishing centers of excellence in automotive, robotics, and high power to scale its go-to-market model.\nArrow Electronics Inc (NYSE:ARW) has maintained a strong cash flow from operations, generating $81 million in the third quarter and $804 million year-to-date, marking the fifth consecutive quarter of positive cash flow generation.\n\n Negative Points \n\nThe global components business is experiencing a prolonged market correction due to excess inventory levels and macroeconomic headwinds.\nOperating margins came under pressure due to regional and customer mix, with a skew towards larger customers impacting gross margins.\nThe company's Q4 outlook anticipates a decline in operating margins due to lower sales volume, particularly in the industrial and automotive market segments.\nArrow Electronics Inc (NYSE:ARW) is executing a plan to further reduce annual operating expenses by $90 million to $100 million by 2026, which includes exiting certain underperforming, non-core business lines.\nThe timing and shape of an eventual recovery in the components business remain difficult to predict, with excess inventories still posing a challenge across the industry.\n\n Q & A Highlights \nQ: Can you clarify your guidance for components, particularly in Asia and Western markets? A: Sean Kerins, President and CEO: We expect modest step downs in the West and something flattish in Asia compared to Q3. The book-to-bill ratio is below one overall, with Asia leading the way in improvement.\nQ: What is impacting your gross margin, and when do you expect it to return to 12%-plus? A: Sean Kerins, President and CEO: The gross margin is affected by customer and regional mix, with larger OEMs impacting margins more than the mass market. Recovery timing is uncertain due to excess inventory and shorter lead times, but we expect improvement as the market normalizes.\nQ: Can you elaborate on the customer and geographic mix impacting your results and outlook? A: Sean Kerins, President and CEO: No significant policy changes from suppliers. Recovery typically starts in Asia, followed by North America and Europe, with larger OEMs recovering before the mass market. Our mix skewed towards larger customers, impacting gross margins.\nQ: How are you addressing cost reductions and what are the expected savings? A: Rajesh Agrawal, CFO: We plan to reduce annual operating expenses by $90 million to $100 million by 2026, focusing on geographic realignment and resource consolidation. These are net savings, with structural changes across the organization.\nQ: What are your strategic growth priorities and areas of investment? A: Sean Kerins, President and CEO: In components, we focus on the mass market, supply chain management, and IP&E market specialization. In ECS, we prioritize hybrid cloud and IT as a service, investing in digital experiences and recurring revenue streams.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480020447"}