Arrow Electronics (ARW) to report earnings tomorrow: here is what to expect

What happened

Arrow Electronics is scheduled to report results Thursday afternoon. Last quarter, it reported revenue of $9.99 billion, up 31.8% year over year, and beat analysts’ revenue and earnings-per-share estimates; its next-quarter earnings-per-share guidance also exceeded expectations. Analysts expect this quarter’s revenue to grow 30.5% year over year.

Confirmed

Global impact / market context

Arrow distributes electronic components and solutions, so its revenue growth offers a clue about demand moving through that supply chain. If results meet or exceed expectations, investors may see support for the company’s sales outlook; a shortfall could raise concerns about demand and future revenue.

Analyst inference

The article says analysts generally reaffirmed their estimates over the past 30 days, indicating little recent change in expectations. It also cites peer results, including revenue growth at NN and Enpro, as clues, but those companies’ results do not establish Arrow’s own performance.

Analyst inference

What to watch

1. Compare reported revenue with the 30.5% year-over-year growth expected in the article; the gap would show whether sales growth was stronger or weaker than anticipated. Confirmed
2. Check whether Arrow’s earnings per share, meaning profit allocated to each share, and its guidance meet or beat analysts’ expectations when results are released. Analyst inference
3. Look for management comments about demand and the outlook, which could help investors judge whether recent revenue growth is likely to continue. Analyst inference

Evidence

• stockstory.org