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.
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