Raymond James stated that the market may be overstating the financial impact of Dell Technologies’ decision to end its Enterprise Computing Distribution agreement with Arrow Electronics. The firm maintained an Outperform rating on Arrow, with analyst Melissa Fairbanks noting that the contract’s reported $1.4 billion value reflects gross billings, not revenue. The earnings impact is likely immaterial and should be offset by Arrow’s current business momentum. Earlier, CRN reported that Dell ended its decade-long distribution relationship with Arrow’s ECS unit after a formal review, creating a potential $1.4 billion-plus opportunity for competing distributors.
Arrow Electronics IncRaymond James says Dell termination earnings impact is likely immaterial and maintains Outperform rating.
Dell Technologies IncDell ended its decade-long distribution relationship with Arrow, creating opportunity for competitors.
Raymond James Financial Inc.