
Arrow Electronics (ARW) Stock Forecast & Price Target
Arrow Electronics (ARW) Analyst Ratings
Bulls say
Arrow Electronics Inc. demonstrated a strong performance in its second quarter, with Enterprise Computing Solutions (ECS) sales reaching $1,861 million, surpassing consensus expectations by 9.3%, indicating robust demand in the market. The Components segment also performed well, achieving sales of $5,032 million, which was 4.8% above both consensus and company guidance, reflecting effective execution and market share gains. Additionally, management's optimism about improving market conditions and stabilization in end markets suggests a favorable outlook for revenue and earnings growth moving forward.
Bears say
The negative outlook on Arrow Electronics's stock is primarily driven by sales guidance that indicates a significant shortfall, with third-quarter sales expectations set at $6.97 billion, representing a 3.9% decline compared to consensus estimates, alongside an earnings per share (EPS) forecast of $2.58 that is $0.84 below consensus, marking an approximate 25% miss. Additionally, the company is experiencing broad declines within the EMEA region, with specific concerning guidance for Components sales, projected at $4.7 billion, falling 5.8% short of consensus due to supplier transition issues. Furthermore, despite a minor improvement in inventory levels, the ongoing high inventory days relative to historical averages and poor margins raise further concerns regarding profitability and operational efficiency moving into the fourth quarter.
This aggregate rating is based on analysts' research of Arrow Electronics and is not a guaranteed prediction by Public.com or investment advice.
Arrow Electronics (ARW) Analyst Forecast & Price Prediction
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