ARROW ELECTRONICS Reports Q2 FY2023 Earnings Results for June 30 2023
August 10, 2023
🌥️Earnings Overview
On August 3 2023, ARROW ELECTRONICS ($NYSE:ARW) revealed their earnings results for Q2 of FY2023, which ended on June 30 2023. The company’s total revenue was USD 8514.5 million, which was 10.0% lower than the same quarter in the previous year. Their net income was also down 36.1%, to USD 236.6 million.
Market Price
Shares opened at $136.4 and closed at $127.7, representing a drop of 9.6% from the previous closing price of $141.3. This is the fifth consecutive quarter of declining earnings for ARROW ELECTRONICS, which has struggled to keep up with the rapid changes in technological trends and cutthroat competition in the market. Despite the decrease in its earnings and revenue, ARROW ELECTRONICS is continuing to invest in its technology and services to stay competitive in the market. Although it has not yet been able to recover its quarterly earnings, investors remain hopeful that the company’s long-term investments will pay off and its stock will be able to recover in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arrow Electronics. More…
| Total Revenues | Net Income | Net Margin |
| 35.84k | 1.2k | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arrow Electronics. More…
| Operations | Investing | Financing |
| 346.75 | -68.15 | -335.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arrow Electronics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.54k | 14.88k | 100.36 |
Key Ratios Snapshot
Some of the financial key ratios for Arrow Electronics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.4% | 31.6% | 5.2% |
| FCF Margin | ROE | ROA |
| 0.7% | 20.9% | 5.7% |
Analysis
At GoodWhale, we use our Star Chart analysis to analyze the financials of ARROW ELECTRONICS. We have concluded that ARROW ELECTRONICS is classified as a ‘rhino’, which means that the company has achieved moderate revenue or earnings growth. In terms of investor interest, ARROW ELECTRONICS is strong in asset, medium in growth, profitability and weak in dividend. However, ARROW ELECTRONICS has a high health score of 8/10 with regard to its cashflows and debt, which indicates that the company is capable of sustaining future operations in times of crisis. This makes ARROW ELECTRONICS an attractive investment option for investors who are looking for a balanced risk-reward profile. More…
Peers
Arrow Electronics Inc is one of the leading global distributors of electronic components and enterprise computing solutions. Its main competitors are Avnet Inc, Samsung Electro-Mechanics Co Ltd, and WPG Holding Co Ltd.
– Avnet Inc ($NASDAQ:AVT)
Avnet Inc is an American technology company headquartered in Phoenix, Arizona. The company is a distributor of electronic components, computer products and embedded technology. Avnet was founded in 1921 and has been publicly traded on the New York Stock Exchange since 1963.
As of 2021, Avnet has a market capitalization of $4.14 billion and a return on equity of 16.09%. The company is a distributor of electronic components, computer products and embedded technology. Avnet was founded in 1921 and has been publicly traded on the New York Stock Exchange since 1963.
– Samsung Electro-Mechanics Co Ltd ($KOSE:009150)
Samsung Electro-Mechanics Co Ltd is a South Korean electronics company that specializes in the manufacture of electronic components and devices. The company has a market capitalization of 10.31 trillion as of 2022 and a return on equity of 14.53%. Samsung Electro-Mechanics is a subsidiary of the Samsung Group and its products are used in a wide range of electronic devices, including mobile phones, televisions, computers and digital cameras.
– WPG Holding Co Ltd ($TWSE:3702)
WPG Holding Co Ltd is a leading electronics manufacturer and distributor in Greater China. The company has a market cap of $78.92 billion as of 2022 and a return on equity of 14.11%. WPG Holding Co Ltd is a vertically integrated company with a strong presence in the upstream and downstream segments of the electronics manufacturing value chain. The company has a diversified product portfolio that includes semiconductors, passive components, displays, and assembly and test services. WPG Holding Co Ltd is a major supplier to global electronics brands such as Apple, Huawei, and Xiaomi.
Summary
ARROW ELECTRONICS reported their Q2 FY2023 earnings on August 3 2023, with total revenue of USD 8514.5 million, representing a 10.0% decrease year-over-year. Net income was USD 236.6 million, a 36.1% decrease from the same period last year. The stock price reacted to the news by dropping the same day. Investors should take note of the company’s decreased revenue and profits, as well as the market’s response, when considering investing in ARROW ELECTRONICS.
However, they should also evaluate the company’s long-term performance and outlook before deciding to invest.
