On August 1, 2024, Arrow Electronics Inc (ARW, Financial) released its 8-K filing for the second quarter of 2024. Arrow Electronics Inc. is a provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company operates through two business segments: the components business and the enterprise computing solutions.
Quarterly Performance Overview
Arrow Electronics Inc (ARW, Financial) reported consolidated sales of $6.9 billion for Q2 2024, surpassing the analyst estimate of $6.52 billion. The company achieved earnings per diluted share of $2.01, significantly higher than the estimated $1.76. On a non-GAAP basis, earnings per diluted share were $2.78.
Despite a 19% year-over-year decrease in sales, Arrow Electronics managed to deliver results ahead of guidance. The company attributed this performance to its value-added offerings in global components and improved momentum in enterprise computing solutions.
Segment Performance
Global Components sales were $5.03 billion, a 25% decrease year-over-year. The segment's operating income was $210 million, with non-GAAP operating income at $218 million. The Americas, EMEA, and Asia-Pacific regions all experienced declines in sales, with EMEA showing the most significant drop at 33% year-over-year.
Global Enterprise Computing Solutions (ECS) sales increased by 2% year-over-year to $1.86 billion. The segment's operating income was $103 million, with non-GAAP operating income at $104 million. EMEA ECS sales grew by 8%, while the Americas saw a 4% decline.
Financial Metrics and Achievements
Arrow Electronics reported a net income attributable to shareholders of $109 million for Q2 2024, down from $237 million in Q2 2023. The company generated $320 million in cash flow from operations and repurchased $50 million in shares during the quarter.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Consolidated Sales | $6.9 billion | $8.5 billion |
| Net Income | $109 million | $237 million |
| Earnings Per Diluted Share | $2.01 | $4.12 |
| Non-GAAP Earnings Per Diluted Share | $2.78 | $4.37 |
Commentary and Analysis
“We continued to execute well in an evolving market environment, delivering second-quarter sales and non-GAAP earnings per diluted share comfortably ahead of our guided ranges,” said Sean Kerins, Arrow’s president and chief executive officer.
Arrow Electronics' ability to manage working capital effectively, reducing inventory levels by approximately $140 million, and generating substantial cash flow from operations highlights its operational efficiency. The company's focus on value-added services and solutions has helped stabilize its operating margins despite market challenges.
For more detailed insights and the complete earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Arrow Electronics Inc for further details.
