Arrow Posts Record Q3 Numbers, Adds Juniper To Line Card10:14 AM EST Wed. Oct. 26, 2011
Arrow Electronics' shares skyrocketed 12 percent Wednesday morning after the distributor beat analysts' estimates on earnings per share before nonrecurring charges, reflecting a sixth consecutive quarter of record revenue and earnings per share, according to the distributor. Arrow, however, missed revenue projections for the third quarter ended Oct. 1.
Arrow, which recently said it was moving its headquarters from Melville, N.Y., to Englewood, Colo., reported net income of $132.2 million, or $1.15 per diluted share, on sales of $5.19 billion. Excluding one-time charges, Arrow would have earned $138.3 million, or $1.20 per share. Analysts were expecting earnings of $1.17 per share on $5.27 billion in earnings. In the year-ago quarter, Arrow reported earnings of $118.5 million, or $1.00 per diluted share, on sales of $4.66 billion.
"Based on our guidance for the fourth quarter, we are on track to achieve earnings per share in excess of $5 per share [for the current fiscal year], an increase of more than 20 percent from 2010's record level," said Mike Long, chairman, president and CEO, in a statement. "I am extremely proud of the entire Arrow team for delivering such strong results in a challenging macroeconomic environment."
Shares were trading at $37.14, up $3.95 per share. Sales in Arrow's Enterprise Computing Solutions business increased 26 percent to $1.54 billion, while its global components business increased just 6 percent.
"Our ECS business again posted record quarterly revenue, with extremely strong year-over-year growth in all of our product lines led by services, software, proprietary servers, industry-standard servers and storage," said Long in the statement. "We are focused on several growth opportunities, including the addition of new suppliers, the penetration of new market segments, and the expansion of our services portfolio."
Meanwhile, Arrow's ECS business could get a further fourth-quarter boost after the distributor said it had added Juniper Networks' full range of networking and data center products in the U.S.
"Arrow ECS has positioned itself at the forefront of the data center convergence movement, connecting solution providers and their customers with industry-leading technology and services to support evolving business needs," said Andy Bryant, president of Arrow ECS, in a statement. "This agreement increases our depth in networking and security solutions, adding technology that is in high demand among enterprise and midmarket customers for its performance and flexibility."
For the current quarter, Arrow expects sales between $5.29 billion and $5.69 billion with earnings between $1.25 and $1.37 per share. Analysts had been predicting earnings of $1.25 per share on sales of $5.54 billion for the fourth quarter.