Arrow Electronics shares fell about 10% on Friday even though the electronic components distributor reported second-quarter results that topped Wall Street expectations and issued an upbeat third-quarter earnings outlook. The company posted non-GAAP earnings of $5.45 per share, beating analyst estimates by $1.00, while revenue climbed 32% year over year to $10 billion, exceeding consensus forecasts by about $450 million. Growth was driven by strong demand across both operating segments, with Global Components sales rising 39% to $7.37 billion and Global Enterprise Computing Solutions revenue increasing 14% to $2.63 billion. Arrow forecast third-quarter revenue of $9.6 billion to $10.2 billion, in line with market expectations, and projected non-GAAP earnings of $4.83 to $5.03 per share, above the consensus estimate of $4.68. Management said healthy demand across regions and end markets, together with higher-margin value-added offerings and disciplined capital allocation, positions the company for continued profitable growth.
Arrow Electronics IncShares fell 10% despite earnings beat and strong outlook, likely due to profit-taking or valuation concerns.
