Global electronics components and solutions distributor Arrow Electronics (NYSE: ARW) will be reporting results this Thursday before market hours. Here’s what you need to know.
Arrow Electronics beat analysts’ revenue expectations last quarter, reporting revenues of $8.75 billion, up 20.1% year on year. It was an incredible quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA 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, the market is expecting Arrow Electronics’s revenue to grow 23.1% year on year, a reversal from the 1.6% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arrow Electronics rarely misses Wall Street’s revenue estimates.
Looking at Arrow Electronics’s peers in the engineered components and systems segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 24.4%, beating analysts’ expectations by 8.6%, and Applied Industrial reported revenues up 7.3%, topping estimates by 2.2%. Worthington traded down 4.6% following the results while Applied Industrial’s stock price was unchanged.
Read our full analysis of Worthington’s results here and Applied Industrial’s results here.
There has been positive sentiment among investors in the engineered components and systems segment, with share prices up 9.9% on average over the last month. Arrow Electronics is up 28.2% during the same time and is heading into earnings with an average analyst price target of $152.50 (compared to the current share price of $188.72).
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