News In Focus: Arrow Electronics, Inc. (NYSE:ARW)

0
20

Arrow Electronics, Inc. (NYSE: ARW) lately reported 4th-quarter 2K17 sales of $7.630 billion, an increase of 18.00% from sales of $6.440 billion in the 4th quarter of 2k16.

4th-quarter net income of $54.00M, or $0.6 for each share on a diluted basis, compared with net income of $165.00M, or $1.810 for each share on a diluted basis, in the 4th quarter of 2k16.

Excluding certain items1, net income would have been $224.00M, or $2.510 for each share on a diluted basis, in the 4th quarter of 2K17, compared with net income of $182.00M, or $2.00 for each share on a diluted basis, in the 4th quarter of 2k16.

In the 4th quarter of 2K17, changes in foreign currencies had positive impacts on the growth of about $190.00M or 3.00% on sales and $0.090 or 5.00% on earnings for each share on a diluted basis compared to the 4th quarter of 2k16.

In the 4th quarter of 2K17 net income was negatively impacted by $125.00M, or $1.40 for each diluted share, related to U.S. tax legislation.

In the 4th-quarter of 2K17, net income, excluding certain items1, was positively impacted by $9.00M, or $0.10 for each diluted share, due to tax reserve releases resulting in an effective tax rate that was below the low-end of our prior expected range.

Global components 4th-quarter sales of $4.940 billion grew 24.00% year over year. 4th-quarter sales, as adjusted, grew 21.00% year over year. Americas components sales grew 25.00% year over year.

Europe components sales grew 35.00% year over year. Sales in the region, as adjusted, grew 24.0% year over year. Asia-Pacific components sales grew 16.00% year over year. Sales in the region, as adjusted, grew 14.00% year over year. “Demand conditions remain strong around the world due to growing electronic content in the industrial and transportation end markets, and strong execution by our team,” said Mr. Long.

Global enterprise computing solutions 4th-quarter sales of $2.690 billion grew 10.00% year over year. 4th-quarter sales, as adjusted, grew 6.00% year over year.

Americas sales grew 5.00% year over year. Europe sales grew 19.00% year over year. Sales in the region, as adjusted, grew 8.00% year over year. “4th-quarter sales exceeded our expectation driven by new and expanded customer engagements, continued growth in our infrastructure software portfolio, and a return to growth for storage,” added Mr. Long.

FULL-YEAR RESULTS

Full-year 2K17 sales of $26.810 billion increased 13.00% from sales of $23.830 billion in 2k16. Net income for 2K17 was $402.00M, or $4.480 for each share on a diluted basis, compared with net income of $523.00M, or $5.680 for each share on a diluted basis, in 2k16.

Excluding certain items1, net income would have been $679.00M, or $7.560 for each share on a diluted basis, in 2K17 compared with net income of $610.00M, or $6.630 for each share on a diluted basis, in 2k16. In 2K17, changes in foreign currencies had positive impacts on the growth of about $142.00M, or 1.0% on sales, and $0.070, or 1.00%, on earnings for each share on a diluted basis compared to 2k16.

“The investments we made to scale our business paid dividends in the 4th quarter. Operating income, excluding certain items1, grew 21.00% compared to 18.00% sales growth, and cash flow from operations was $123.00M despite continued investment in working capital,” said Chris Stansbury, senior vice president, and chief financial officer. “In the 4th quarter we reduced net leverage for the second quarter in a row, and we returned about $25.00M to shareholders through our stock repurchase program.

In 2K17 we returned about $161.00M to shareholders through our stock repurchase program. We had about $359.00M of remaining authorization under our share repurchase programs at the end of the year.”

GUIDANCE:

“As we look to the 1st-quarter, we believe that total sales will be between $6.4 billion and $6.8 billion, with global components sales between $4.70 billion and $4.90 billion, and global enterprise computing solutions sales between $1.70 billion and $1.90 billion.

As a result of this outlook, we expect earnings for each share on a diluted basis, to be in the range of $1.50 to $1.62, and earnings for each share on a diluted basis, excluding any charges, to be in the range of $1.74 to $1.86 for each share.

Our guidance assumes an average tax rate in the range of 23.5 to 25.50%, down from our prior range of 27.0 to 29.0% due to U.S. tax legislation, and average diluted shares outstanding are expected to be 89.0M.

Our guidance assumes an increase in non-cash depreciation expense of $6.00M related to the go-live on our Americas ERP system. We are expecting the average USD-to-Euro exchange rate for the 1st-quarter to be about $1.220 to €1.00,” said Mr. Stansbury.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here