Global electronics components and solutions distributor Arrow Electronics (NYSE:ARW) will be announcing earnings results this Thursday after market close. Here’s what to expect.
Arrow Electronics beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $7.71 billion, up 13% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ adjusted operating income estimates.
Is Arrow Electronics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Arrow Electronics’s revenue to grow 12.7% year on year to $8.21 billion, a reversal from the 7.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arrow Electronics has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.
Looking at Arrow Electronics’s peers in the industrial machinery segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Applied Industrial delivered year-on-year revenue growth of 8.4%, missing analysts’ expectations by 0.7%, and GE Aerospace reported revenues up 17.6%, topping estimates by 13.9%. Applied Industrial traded down 9% following the results while GE Aerospace was also down 7.7%.
Read our full analysis of Applied Industrial’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 8.5% on average over the last month. Arrow Electronics is up 19.8% during the same time and is heading into earnings with an average analyst price target of $113 (compared to the current share price of $135.33).
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