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ARW NYSE· Arrow Electronics Inc
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ARW NYSE· Arrow Electronics Inc
Earnings report Q4 2023

ARW Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

ARW reported sales of $33.11 billion for the latest quarter, representing a decrease from $37.12 billion in the previous year's quarter and $34.48 billion in the same quarter two years ago. The company's revenue is primarily generated from the sale of electronic components and enterprise computing solutions.

Strengths

Despite the decrease in revenue, ARW remains strong in the EMEA region, particularly in data intelligence, cyber-security solutions, and other software. The company's ArrowSphere platform has enabled the growth of cloud-based solutions, contributing to its overall performance. Management comments suggest that ARW continues to focus on expanding its presence in these areas to drive future revenue growth.

Challenges

The decrease in revenue can be attributed to various factors, including the impact of changes in foreign currencies and a decline in consolidated gross profit. The company's gross profit margin decreased from 13.0% to 12.5% compared to the previous year's quarter. This decline may indicate challenges in managing costs and maintaining profitability in a competitive market.

Noteworthy

ARW's sales are primarily made on an order-by-order basis, rather than through long-term sales contracts. This business model limits the visibility of forward-looking information beyond a few months, making it challenging to predict future revenue trends accurately. Additionally, the company's financial statements have been audited and deemed to present the financial position of ARW fairly in accordance with U.S. generally accepted accounting principles.

Summary

ARW reported a decrease in revenue for the latest quarter, primarily driven by a decline in consolidated gross profit and the impact of changes in foreign currencies. However, the company remains strong in the EMEA region, particularly in data intelligence, cyber-security solutions, and cloud-based solutions enabled by the ArrowSphere platform. ARW's focus on expanding its presence in these areas indicates a strategic approach to drive future revenue growth. The company's order-by-order sales model and limited visibility of forward-looking information pose challenges in predicting future revenue trends accurately. Overall, ARW's latest financial performance reflects a mixed outcome with both strengths and challenges to consider.

Source documents

Form 10-K  filed on Feb 13, 2024
115 pages scanned

Reference data

Company financials Q4 revenue 7.85B
Analyst estimates Q4 EPS beat by 7.10%
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