Arrow Electronics, Inc. (ARW) has reported a 7.77 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $117.73 million, or $1.28 a share in the quarter, compared with $109.24 million, or $1.15 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $143.14 million, or $1.56 a share compared with $133.41 million or $1.40 a share, a year ago.
Revenue during the quarter grew 4.17 percent to $5,936.09 million from $5,698.30 million in the previous year period. Total expenses were 96.65 percent of quarterly revenues, down from 96.74 percent for the same period last year. This has led to an improvement of 9 basis points in operating margin to 3.35 percent.
Operating income for the quarter was $198.68 million, compared with $185.79 million in the previous year period.
However, the adjusted operating income for the quarter stood at $236.84 million compared to $217.82 million in the prior year period. At the same time, adjusted operating margin improved 17 basis points in the quarter to 3.99 percent from 3.82 percent in the last year period.
"Our strong execution drove record third-quarter sales for both our global components and global enterprise computing solutions businesses," said Michael J. Long, chairman, president, and chief executive officer. "Our results this quarter continue to show our leadership position at the forefront of innovation for digital commerce, cloud, and IoT."
For the fourth-quarter, Arrow Electronics forecasts revenue to be in the range of $6,300 million to $6,700 million. The company expects diluted earnings per share to be in the range of $1.68 to $1.84.
Operating cash flow improves
Arrow Electronics, Inc. has generated cash of $135.75 million from operating activities during the nine month period, up 22.36 percent or $24.81 million, when compared with the last year period.
The company has spent $207.29 million cash to meet investing activities during the nine month period as against cash outgo of $623.96 million in the last year period.
Cash flow from financing activities was $203.40 million for the nine month period, down 57.33 percent or $273.23 million, when compared with the last year period.
Cash and cash equivalents stood at $384.42 million as on Oct. 01, 2016, up 14.16 percent or $47.67 million from $336.74 million on Sep. 26, 2015.
Working capital increases marginally
Arrow Electronics, Inc. has recorded an increase in the working capital over the last year. It stood at $3,668.16 million as at Oct. 01, 2016, up 3.38 percent or $120.08 million from $3,548.08 million on Sep. 26, 2015. Current ratio was at 1.66 as on Oct. 01, 2016, down from 1.77 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 53 days for the last year period. Days sales outstanding went up to 84 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding went up to 79 days for the quarter from 74 for the same period last year.
Debt comes down marginally
Arrow Electronics, Inc. has recorded a decline in total debt over the last one year. It stood at $2,782.20 million as on Oct. 01, 2016, down 1.83 percent or $51.88 million from $2,834.08 million on Sep. 26, 2015. Total debt was 21.18 percent of total assets as on Oct. 01, 2016, compared with 23.61 percent on Sep. 26, 2015. Debt to equity ratio was at 0.62 as on Oct. 01, 2016, down from 0.67 as on Sep. 26, 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
