Arrow Electronics Inc (ARW) Reports Q3 2023 Earnings, Sales Decrease by 14%
Arrow Electronics Inc (NYSE:ARW) reported Q3 2023 sales of $8.01 billion, a decrease of 14% year over year.
Third-quarter net income was $199 million, or $3.53 per share on a diluted basis, compared with net income of $342 million, or $5.27 per share on a diluted basis, in the third quarter of 2022.
Non-GAAP net income was $233 million, or $4.14 per share on a diluted basis, in the third quarter of 2023.
The company generated $322 million in cash flow from operations in the third quarter.
Arrow Electronics Inc (NYSE:ARW) released its third-quarter earnings report on November 2, 2023. The company reported sales of $8.01 billion, marking a 14% decrease year over year. The third-quarter net income was $199 million, or $3.53 per share on a diluted basis, compared with net income of $342 million, or $5.27 per share on a diluted basis, in the third quarter of 2022. Non-GAAP net income was $233 million, or $4.14 per share on a diluted basis, in the third quarter of 2023.
Financial Performance
Arrow Electronics Inc (NYSE:ARW) reported a decrease in sales across its global components and global enterprise computing solutions (ECS) businesses. Global components third-quarter sales of $6.25 billion reflected a decrease of 14% year over year. Global ECS third-quarter sales of $1.76 billion reflected a decrease of 10% year over year. Despite the decrease in sales, the company generated $322 million in cash flow from operations in the third quarter.
Company's Commentary
Sean Kerins, Arrows president, and chief executive officer, commented on the company's performance. He said,
The company executed well amidst an inventory correction in the semiconductor market and a softer information technology market, delivering non-GAAP earnings per share at the high end of our guidance range.
Outlook for Q4 2023
For the fourth quarter of 2023, the company expects GAAP net income per diluted share to be between $3.30 to $3.50. Non-GAAP net income per share on a diluted basis is expected to be between $3.61 to $3.81. The company also expects global components sales to be between $5.40 billion to $5.80 billion and global ECS sales to be between $2.10 billion to $2.30 billion.
Share Repurchase
During the third quarter, Arrow Electronics Inc (NYSE:ARW) repurchased approximately $200 million of shares and now has remaining purchase authorization of approximately $622 million.
Explore the complete 8-K earnings release (here) from Arrow Electronics Inc for further details.
This article first appeared on GuruFocus.
