Arrow Electronics 2Q adj. profit beats Street

Arrow Electronics 2Q adjusted profit, revenue beat Wall Street's expectations; shares climb

Associated Press

ENGLEWOOD, Colo. (AP) -- Arrow Electronics' second-quarter net income dropped 21 percent, weighed down by increased restructuring charges and an income tax adjustment.

But the electronics maker's adjusted earnings and revenue topped analysts' expectations, and it provided a third-quarter adjusted earnings forecast above Wall Street's view.

Shares climbed to their highest point in more than two years.

Arrow earned $89.9 million, or 86 cents per share, for the period ended June 29. That compares with $114.4 million, or $1.02 per share, a year ago.

Taking out restructuring charges, an income tax adjustment and other items, earnings were $1.13 per share. Prior-year adjusted earnings were $1.12 per share.

Analysts surveyed by FactSet forecast earnings of $1.02 per share.

Arrow's stock gained $2.10, or 4.9 percent, to $45.35. The shares hit $46.39 earlier, the highest level since May 2011.

Restructuring charges totaled 20 cents per share, more than double from 9 cents per share last year.

Revenue for the Englewood, Colo., company climbed 3 percent to $5.31 billion from $5.15 billion, beating Wall Street's $5.12 billion forecast.

Global enterprise solutions sales rose 12 percent, with increased sales in Europe and the Americas. Global components sales fell 2 percent on lower sales in both regions.

For the third quarter, Arrow Electronics Inc. anticipates adjusted earnings of $1.14 to $1.26 on revenue between $4.9 billion and $5.3 billion. Analysts predict earnings of $1.03 per share on revenue of $5.07 billion.

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