Arrow Electronics, Inc. (ARW) has reported 3.80 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $164.52 million, or $1.81 a share in the quarter, compared with $158.49 million, or $1.69 a share for the same period last year. On an adjusted basis, net profit for the quarter was almost stable at $181.65 million, or $2 a share, when compared with the last year period. Revenue during the quarter dropped 4.57 percent to $6,442.89 million from $6,751.34 million in the previous year period. Gross margin for the quarter expanded 35 basis points over the previous year period to 12.78 percent. Total expenses were 96.04 percent of quarterly revenues, down from 96.23 percent for the same period last year. This has led to an improvement of 19 basis points in operating margin to 3.96 percent.
Operating income for the quarter was $254.90 million, compared with $254.31 million in the previous year period.
However, the adjusted operating income for the quarter stood at $280.97 million compared to $283.72 million in the prior year period. At the same time, adjusted operating margin improved 16 basis points in the quarter to 4.36 percent from 4.20 percent in the last year period.
"Our digital transformation and IoT solutions spanning from sensor to sunset helped drive record full-year sales and earnings per share," said Michael J. Long, chairman, president, and chief executive officer. "Our customers value our comprehensive portfolio of electronic components and embedded computing, datacenter, cloud, and reverse logistics solutions."
For the first-quarter, Arrow Electronics forecasts revenue to be in the range of $5,375,000 million to $5,775,000 million. The company expects diluted earnings per share to be in the range of $1.18 to $1.30 for the first-quarter.
Operating cash flow drops significantlyArrow Electronics, Inc. has generated cash of $355.81 million from operating activities during the year, down 45.69 percent or $299.27 million, when compared with the last year. The company has spent $241.45 million cash to meet investing activities during the year as against cash outgo of $664.03 million in the last year.
Cash flow from financing activities was $166.06 million for the year as against cash outgo of $84.19 million in the last year period.
Cash and cash equivalents stood at $534.32 million as on Dec. 31, 2016, up 95.66 percent or $261.23 million from $273.09 million on Dec. 31, 2015.
Working capital increases
Arrow Electronics, Inc. has recorded an increase in the working capital over the last year. It stood at $3,627.50 million as at Dec. 31, 2016, up 15.88 percent or $497.18 million from $3,130.32 million on Dec. 31, 2015. Current ratio was at 1.54 as on Dec. 31, 2016, up from 1.52 on Dec. 31, 2015.
Debt moves up
Arrow Electronics, Inc. has witnessed an increase in total debt over the last one year. It stood at $2,790.16 million as on Dec. 31, 2016, up 15.08 percent or $365.56 million from $2,424.60 million on Dec. 31, 2015. Total debt was 19.64 percent of total assets as on Dec. 31, 2016, compared with 18.62 percent on Dec. 31, 2015. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, up from 0.58 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
