Arrow's (ARW) Q3 Earnings & Revenues Top Estimates, Down Y/Y
Zacks Investment Research | Nov 03, 2019 08:22PM ET
Arrow Electronics Inc. (NYSE:ARW) reported third-quarter 2019 adjusted earnings per share of $1.86, which decreased 13.5% on a year-over-year basis. However, the figure surpassed the Zacks Consensus Estimate of $1.67.
Revenues came in at $7.08 billion, down 5.5% from the year-ago quarter. As adjusted, revenues were down 3% year over year. The figure, however, beat the consensus estimate of $7.06 billion.
Demand for components declined during the third quarter as a result of ongoing geopolitical tensions. Demand from smaller customers was weaker than expected. Moreover, U.S. tariffs took a toll on the company’s top line.
Additionally, consumption of Arrow’s European exports declined. Expectations for demand recovery are being pushed further out into 2020. Moreover, design activities remained slow.
Further, the company faced foreign currency headwinds amounting to $103 million on sales and 4 cents on earnings during the quarter.
However, strong uptrend in design activity in Asia was a breather. Also, progress in cost optimization, focus on long-term growth strategy, and commitment toward the expansion of engineering were positives.
Arrow Electronics, Inc. Price, Consensus and EPS Surprise
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