What To Expect From Arrow Electronics’s (ARW) Q3 Earnings

Global electronics components and solutions distributor Arrow Electronics (NYSE:ARW) will be reporting results tomorrow morning. Here’s what investors should know.

Arrow Electronics beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $6.89 billion, down 19% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

Is Arrow Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Arrow Electronics’s revenue to decline 15.9% year on year to $6.73 billion, a further deceleration from the 13.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.22 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arrow Electronics has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Arrow Electronics’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Industrial posted flat year-on-year revenue, beating analysts’ expectations by 1.5%, and Worthington reported a revenue decline of 17.5%, falling short of estimates by 13.1%. Applied Industrial traded up 3.4% following the results while Worthington was down 5.5%.

Read our full analysis of Applied Industrial’s results here and Worthington’s results here.

Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Arrow Electronics is up 2.1% during the same time and is heading into earnings with an average analyst price target of $131.67 (compared to the current share price of $134.55).

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