Arrow Electronics beats Q2 revenue, profit estimates on strong demand
Arrow Electronics beats Q2 revenue, profit estimates on strong demand
Overview
Technology distributor's Q2 revenue rose 32% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased $43 mln of shares in Q2
Outlook
Arrow sees Q3 consolidated sales of $9.60 bln to $10.20 bln
Company expects Q3 diluted EPS of $4.72 to $4.92, non-GAAP EPS of $4.83 to $5.03
Arrow expects Q3 sales to be reduced by $27 mln due to foreign currency changes
Result Drivers
GLOBAL COMPONENTS GROWTH - Global Components sales rose 39% yr/yr, with strong growth in Americas, EMEA, and Asia-Pacific regions
HEALTHY DEMAND AND BACKLOG - Co said demand was strong across regions, end markets and customer segments, with book-to-bill ratios well above parity and a growing backlog
FOREIGN CURRENCY TAILWIND - Changes in foreign currencies boosted Q2 sales by $93.5 mln and EPS by $0.09 compared to Q2 2025
Company press release: ID:nBw6HfrWPa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $9.99 bln | $9.56 bln (4 Analysts) |
Q2 Adjusted EPS | Beat | $5.45 | $4.46 (4 Analysts) |
Q2 EPS |
| $5.26 |
|
Q2 Net Income |
| $273 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $230.33, about 1.5% above its August 5 closing price of $226.85
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Aug 5 - Avnet Q4 sales beat estimates on improved demand
Aug 5 - CDW Q2 sales beat estimates on strong cloud and AI demand
Aug 6 - Insight Enterprises Q2 revenue up 15%, beats estimates
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
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