Arrow Electronics Earnings Preview: What to Expect on October 31st
Get ready for Arrow Electronics’s quarterly earnings announcement, scheduled for Thursday, October 31st, 2024. As investors eagerly await the release, analysts are projecting an earnings per share (EPS) of $2.22. But the real focus might be on the company’s guidance for the upcoming quarter, as it can significantly influence stock prices.
Past Performance: A Mixed Bag
Looking back at previous earnings releases, Arrow Electronics has shown a mixed performance. In the last quarter, the company exceeded EPS estimates by $0.62, yet this positive news resulted in a 2.47% drop in the share price the following trading session. Here’s a breakdown of their recent performance:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | 2.16 | 2.78 | -2.0% |
| Q1 2024 | 2.37 | 2.41 | 2.0% |
| Q4 2023 | 3.72 | 3.98 | -2.0% |
| Q3 2023 | 3.51 | 4.14 | 1.0% |
Analyst Perspectives: A Neutral Outlook
Understanding market sentiment is crucial for investors. Currently, analysts have assigned a consensus rating of Neutral to Arrow Electronics, based on a total of 3 ratings. Their average one-year price target sits at $130.33, suggesting a potential 3.14% downside.
Peer Comparisons: A Closer Look
To gain further insights, let’s compare Arrow Electronics to its industry peers: Insight Enterprises, Avnet, and TD Synnex.
*
Insight Enterprises:
Analysts favor an Outperform trajectory, with an average one-year price target of $225.0, indicating a potential 67.22% upside.*
Avnet:
The current consensus leans towards a Neutral trajectory, with an average one-year price target of $50.67, suggesting a potential 62.34% downside.*
TD Synnex:
Analysts are bullish on TD Synnex, favoring an Outperform trajectory with an average one-year price target of $139.6, implying a potential 3.75% upside.Financial Snapshot: A Deeper Dive
Examining key financial metrics offers a clearer picture of Arrow Electronics’s standing within the industry:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Arrow Electronics | Neutral | -19.05% | $846.44M | 1.90% |
| Insight Enterprises | Outperform | -8.00% | $453.37M | 4.85% |
| Avnet | Neutral | -15.13% | $642.88M | 1.67% |
| TD Synnex | Outperform | 5.19% | $961.05M | 2.20% |
Key Takeaways:
* Arrow Electronics’s revenue growth (-19.05%) lags behind its peers, placing it in the middle of the pack.
* The company’s gross profit of $846.44M is the lowest among its peers.
* Arrow Electronics’s return on equity (1.90%) is also the lowest among its peers, indicating potential challenges in efficiently utilizing equity capital.
About Arrow Electronics
Arrow Electronics Inc. is a leading provider of electronic components, enterprise computing solutions, and related services to industrial and commercial customers worldwide. They boast a vast portfolio of product offerings, coupled with a range of services and software solutions, to help customers bring products to market faster and enhance their competitiveness.
Understanding the Numbers: Financial Highlights
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Market Capitalization:
Arrow Electronics’s market capitalization surpasses the industry average, highlighting its significant scale and strong market position.*
Revenue Growth:
Over the past 3 months (as of June 30, 2024), Arrow Electronics experienced a -19.05% decline in revenue growth, signifying a reduction in top-line earnings. This growth rate is lower than the average in the Information Technology sector.*
Net Margin:
The company’s net margin falls below industry averages, indicating potential challenges in achieving strong profitability (1.58%).*
Return on Equity (ROE):
Arrow Electronics’s ROE is also below industry averages, suggesting potential challenges in utilizing equity capital efficiently (1.9%).*
Return on Assets (ROA):
The company’s ROA falls below industry averages, indicating potential challenges in generating optimal returns from its assets (0.54%).*
Debt Management:
Arrow Electronics’s debt-to-equity ratio is significantly higher than the industry average (0.58), indicating a heavier reliance on borrowed funds and a higher level of financial risk.Stay tuned for Arrow Electronics’s earnings announcement on October 31st, 2024, and watch for insights into the company’s future performance and guidance.
