Q2 2024 Arrow Electronics Inc Earnings Call Transcript
Key Points
- Arrow Electronics Inc (ARW) delivered total revenue of $6.9 billion and non-GAAP earnings per share of $2.78, both exceeding the high end of their guidance.
- The Global Components segment showed solid financial results, with signs of incremental improvement across several market segments.
- Operating margin for the second quarter was 4.3%, well above levels experienced at the low point of previous cyclical corrections.
- Sequential growth in revenue was observed in Asia, particularly in China, driven by mild improvement in industrial and compute verticals.
- The company generated $320 million in operating cash flow in the second quarter and over $1.3 billion over the last 12 months, indicating strong cash generation capabilities.
- Consolidated sales for the second quarter were down 19% versus the prior year.
- Gross margin of 12.3% was down approximately 20 basis points sequentially and versus prior year, driven primarily by the overall mix of business in their two segments.
- The Americas region experienced a slight decline, with broader industrial and transportation markets remaining in decline.
- The Q3 outlook indicates a modest sequential decline in the ECS business, reflecting typical seasonal patterns.
- The company is still navigating the later stages of a prolonged inventory correction throughout the electronics supply chain.
Please standby for streaming text.
Good day, and welcome to the Arrow Electronics Second Quarter 2024 earnings call. Today's conference is being recorded. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question again, press star one.
At this time, I would like to turn the conference over to Brad Windbigler, Treasurer and Vice President of Investor Relations. Please go ahead.
Thank you, operator. I'd like to welcome everyone to the Arrow Electronics Second Quarter 2024 earnings conference call. Joining me on the call today are President and Chief Executive Officer, Sean Kiernan, our Chief Financial Officer, Raj Agarwal, President, Global Components, Rick run-up in our President of Global Enterprise Computing Solutions. Eric, Noah, during this call will make forward looking statements, including statements about our business
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