ARW's Q4 Earnings Beat Estimates, Revenues Fall Y/Y, Shares Down

Arrow Electronics ARW shares fell 2.5% to close at $106.98 on Friday following its disappointing fourth-quarter 2024 results. The company reported adjusted earnings of $2.38 per share, which beat the Zacks Consensus Estimate by 10.41%. The bottom line declined 25.4% year over year. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the fourth quarter, ARW reported revenues of $7.28 billion, down 7.2% year over year. However, the top line beat the Zacks Consensus Estimate by 4.09%. Arrow Electronics, Inc. Price, Consensus and EPS Surprise Arrow Electronics, Inc. price-consensus-eps-surprise-chart | Arrow Electronics, Inc. Quote ARW’s Q4 Revenue DetailsIn the fourth quarter of 2024, Global Component sales decreased 14.6% year over year on a reported basis and 14.4% on a constant currency (cc) basis to $4.81 billion. Region-wise, the segment’s revenues from EMEA declined 24.9%, as well as sales from the Americas and Asia-Pacific regions plunged 10.1% and 9.8%, respectively, at cc.Global Enterprise Computing Solutions (ECS) revenues were $2.47 billion, which increased 11.6% year over year and 12.4% at cc. Region-wise, the segment’s revenues from America and EMEA increased 1.7% and 24%, respectively, at cc.ARW’s Q4 Operating DetailsThe non-GAAP operating income from Global Components and Global ECS was $173 million and $161 million, respectively. While Global Components’ operating income declined 39.9% year over year, Global ECS jumped 10.3%.Arrow Electronics’ non-GAAP operating income plunged 24.8% year over year to $273.7 million in the fourth quarter of 2024. The non-GAAP operating margin shrunk 90 basis points on a year-over-year basis to 3.8%.ARW's Balance Sheet and Cash FlowArrow Electronics exited the fourth quarter with cash and cash equivalents of $188.8 million compared with the previous quarter’s $248 million.The long-term debt was $2.77 billion, down from $2.36 billion at the end of the previous quarter.Operating cash flow was $326 million in the fourth quarter of 2024.In the fourth quarter of 2024, ARW returned $50 million to its shareholders through share repurchases.ARW Offers Positive Q1 GuidanceFor the first quarter of 2025, sales are estimated between $5.98 billion and $6.58 billion.Global Components sales are projected in the band of $4.35 billion and $4.75 billion. Global ECS sales are anticipated to be between $1.63 billion and $1.83 billion.Interest expenses are expected to be between $60 million and $65 million. ARW expects non-GAAP earnings in the band of $1.30-$1.50 per share.Zacks Rank & Stocks to ConsiderArrow Electronics currently carries a Zacks Rank #3 (Hold).Arista Networks ANET, Twilio TWLO and DoorDash DASH are some better-ranked stocks in the broader sector. While ANET and TWLO sport a Zacks Rank #1 (Strong Buy) each, DASH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Arista Networks is scheduled to report its fourth-quarter 2024 results on Feb. 18. Twilio is set to report fourth-quarter 2024 results on Feb. 13, while DoorDash is scheduled to report its fourth-quarter 2024 results on Feb. 11.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report Twilio Inc. (TWLO): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks