Arrow Electronics Shares Popped: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Arrow Electronics (NYS: ARW) rose more than 13% in early trading before closing up 7.7%. Investors bid up the stock after a pleasing third-quarter financial report.

So what: Revenue rose 11% to $5.19 billion while adjusted per-share earnings improved at a similar clip, to $1.20 a share. Wall Street had been calling for $1.17 a share of profit on $5.27 billion in revenue.

Now what: More importantly, management gave earnings guidance that was ahead of estimates. Arrow now expects to produce $1.25 to $1.37 a share in Q4 profit. At the midpoint -- $1.31 a share -- management came in roughly 5% higher than the $1.25 a share analysts had been calling for. Does the beat make you a buyer? Please weigh in using the comments box below.

Interested in more information about Arrow Electronics? Add it to yourwatchlist.

At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.