Arrow Shares Rise After Meeting 1Q Expectations

Arrow reported $26.7 million in net income, or 22 cents per share, for the first fiscal quarter ended April 4, compared to earnings of $85.9 million, or 69 cents per diluted share, in the year-ago quarter. Sales in the quarter fell 15 percent year over year to $3.42 billion from $4.03 billion.

Shares were trading at $21.84, up 50 cents, or 2.3 percent, in morning trading.

The results for the quarter included a number of charges. Excluding those items, net income for the quarter would have been $42.8 million, or 36 cents per share. Analysts had predicted net income of 35 cents per share, excluding charges.

Global sales of Arrow Enterprise Computing Solutions decreased only 3 percent year over year, to $1.07 billion, but fell 13 percent excluding the acquisition of European distributor Logix S.A.

"Our ECS segment performed well despite the macro environment. We continue to see the integration of Logix in Europe going well, as sales in this region came in ahead of expectations due to strong performance in the U.K. and southern Europe," said Mike Long, president and COO, in a statement. "While our visibility on revenue and demand remains challenging, we would expect second-quarter sales growth to be at the low end of our normal seasonal range."

Global components sales of $2.35 billion decreased 20 percent year over year, primarily due to weakness in Europe and North America.

Arrow provided second-quarter earnings guidance that was less than analysts' expectations.

The distributor said it expects to earn 26 cents to 38 cents per share, excluding any charges, in the current quarter, while analysts were forecasting net income of 45 cents per share. The company also said it expects between $3.15 billion and $3.75 billion in sales. Analysts were expecting sales of $3.46 billion.