Arrow Electronics (ARW) Tops Q1 Earnings & Revenue Estimates

Arrow Electronics ARW reported impressive first-quarter 2022 results. The company’s adjusted earnings of $5.43 per share beat the Zacks Consensus Estimate of $4.53. The bottom line improved by a whopping 91% on a year-over-year basis.

In the first quarter of 2022, the company reported revenues of $9.07 billion, up 8% from the year-ago quarter. Excluding the impact of unfavorable currency exchange rates, sales increased 10.2%. The top line also surpassed the consensus mark of $8.67 billion.

Arrow Electronics has been witnessing the increasing demand for electronic components and software, cloud and security solutions. However, supply-chain constraints have been limiting its ability to capitalize on the growing demand.

Arrow Electronics, Inc. Price, Consensus and EPS Surprise

Arrow Electronics, Inc. Price, Consensus and EPS Surprise

Arrow Electronics, Inc. price-consensus-eps-surprise-chart | Arrow Electronics, Inc. Quote

Segment Details

Adjusted revenues from Global Components increased 13.5% year over year to $7.2 billion. Region-wise, the segment’s revenues from America jumped 37.6% year over year. Adjusted sales from Europe increased 31.1% year over year. Global Components’ sales in the Asia Pacific region were down 7.6% on a year-over-year basis.

Adjusted revenues from Global Enterprise Computing Solutions (“ECS”) came in at $1.88 billion, down 0.9% year over year. Region-wise, the segment’s revenues from America fell 8.8%, while Europe’s revenues increased 11.4%.

The non-GAAP operating income from Global Components and Global ECS were $506 million and $88 million, respectively.

Margins

Arrow Electronics’ non-GAAP gross profit climbed 29.8% to $1.21 billion in the first quarter from the prior-year quarter’s $930.1 million. The non-GAAP gross margin expanded 220 basis points (bps) year over year to 13.3%.

The non-GAAP operating income surged 66.7% to $524.3 million in the January-March 2022 quarter from the year-ago quarter’s $314.5 million. The non-GAAP operating margin grew 200 bps to 5.8%.

Balance Sheet and Cash Flow

Arrow Electronics exited the first quarter with cash and cash equivalents of $242.8 million compared with the previous quarter’s $222.2 million.

The long-term debt was $2.79 billion, higher than $2.24 billion at the end of the fourth quarter of 2021.

The New York-based electronic components distributor used $200.2 million of cash for operating activities during the first quarter. In the first quarter of 2022, ARW returned $264.4 million worth of shares to its shareholders through the stock-repurchase program. It has $513 million remaining under its current share-repurchase authorization.

Guidance

For the second quarter of 2022, sales are estimated between $9.04 billion and $9.64 billion.

Global Components sales are projected in the range of $7.29-$7.59 billion. Global ECS sales are anticipated in the band of $1.75-$2.05 billion.

Interest expenses will presumably be about $36 million. As a result, the company projects non-GAAP earnings per share (EPS) in the range of $5.48-$5.64.

Arrow Electronics expects changes in foreign currencies to decrease second-quarter sales by approximately $300 million and EPS by 20 cents.

Zacks Rank & Stocks to Consider

Arrow Electronics currently carries a Zacks Rank #4 (Sell). Shares of ARW have rallied 5.9% in the past year.

Some better-ranked stocks from

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Wanting for Stocks with Beneficial Earnings Momentum? Look at Out These 2 Computer system and Technology Names

Wall Road watches a company’s quarterly report carefully to comprehend as considerably as attainable about its latest general performance and what to anticipate heading forward. Of study course, one particular figure frequently stands out amid the relaxation: earnings.

The earnings determine by itself is vital, but a conquer or skip on the base line can from time to time be just as, if not a lot more, important. For that reason, buyers ought to take into consideration paying close notice to these earnings surprises, as a huge conquer can help a inventory climb even larger.

2 Stocks to Insert to Your Watchlist

The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by concentrating on the most current analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate forward of an earnings release, it suggests they likely have new data that could quite possibly be a lot more precise. The main of the ESP product is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, wherever the ensuing percentage big difference amongst the two equals the Predicted Surprise Prediction.

The closing move today is to look at a inventory that meets our ESP skills. Wix.com (WIX) earns a Zacks Rank #2 17 times from its following quarterly earnings launch on Could 16, 2022, and its Most Correct Estimate arrives in at -$.54 a share.

WIX has an Earnings ESP figure of 15.09%, which, as discussed over, is calculated by taking the proportion big difference in between the -$.54 Most Precise Estimate and the Zacks Consensus Estimate of -$.64.

WIX is aspect of a significant team of Personal computer and Technologies stocks that boast a optimistic ESP, and buyers may perhaps want to consider a seem at HubSpot (HUBS) as properly.

HubSpot, which is readying to report earnings on Could 5, 2022, sits at a Zacks Rank #3 (Keep) appropriate now. It is Most Accurate Estimate is currently $.47 a share, and HUBS is 6 times out from its future earnings report.

The Zacks Consensus Estimate for HubSpot is $.47, and when you choose the percentage variance amongst that variety and its Most Accurate Estimate, you get the Earnings ESP determine of .21%.

WIX and HUBS’ favourable ESP metrics could signal that a constructive earnings surprise for both shares is on the horizon.

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Use the Zacks Earnings ESP Filter to transform up shares with the maximum likelihood of positively, or negatively, shocking to invest in or offer just before they are claimed for lucrative earnings year investing. Check it out listed here

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Electronics Stocks’ Oct 27 Earnings Roster: KLAC, TEL & More

Electronics stocks are expected to have continued gaining from the pandemic-led work-from-home and learn-from-home trends in third-quarter 2021.

The trends, which have led to the growing proliferation of laptops, notebooks, office equipment and network peripherals, have turned out to be boons for electronics companies.

Electronics stocks’ upcoming quarterly results are expected to reflect the impacts of the growing adoption of AI, Machine Learning (ML), Augmented Reality (AR)/Virtual Reality (VR) devices, and cloud computing.

The increasing demand for data centers to ensure an efficient remote-working environment is expected to have benefited the stocks in the quarter under review.

Technical advancements in Internet infrastructure and accelerated deployment of 5G technology worldwide are also expected to have benefited industry participants in the to-be-reported quarter.

IoT-supported industrial automation and the rising demand for connected appliances are expected to have acted as tailwinds for electronic companies.

The increasing use of electronic components in smart cars and autonomous vehicles is likely to have benefited electronics companies in the quarter under review.

Solid demand in the consumer sector for connected appliances such as smart TVs, high-end smartphones, and AI-backed smart speakers is anticipated to have been a tailwind.

However, uncertainties related to the ongoing pandemic are likely to have been concerning for the industry participants in the quarter under discussion.

Sneak Peek on a Few Upcoming Releases

Let’s see how the following electronics stocks are poised ahead of their quarterly results, which are slated to be reported on Oct 27.

KLA Corporation’s KLAC first-quarter fiscal 2022 results are expected to reflect gains from a solid momentum in wafer fabrication equipment. Strength in optical pattern wafer inspection is anticipated to have persistently driven the company’s semiconductor process control segment in the quarter under review.

Growing investments in foundry, logic and memory are anticipated to have contributed well to the semiconductor process control systems business in the quarter under discussion. Also, the impacts of increasing investments in the advanced packaging market for boosting the adoption of the latest technologies are anticipated to get reflected in the upcoming quarterly results. (Read more: KLA Corp to Report Q1 Earnings: What’s in Store?)

Our proven model conclusively predicts an earnings beat for KLA Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Notably, KLA Corp has an Earnings ESP of +0.41% and a Zacks Rank #3.

The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings has been unchanged at $4.45 per share over the past 30 days.

KLA Corporation Price and EPS Surprise

KLA Corporation Price and EPS Surprise

KLA Corporation price-eps-surprise | KLA Corporation Quote

TE Connectivity’s TEL fourth-quarter fiscal 2021 results are anticipated to reflect benefits from its solid execution of strategies, especially cost-reduction and footprint consolidation initiatives. The growing momentum across the factory-automation and renewable

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