Arrow Electronics profit, revenue top Street view

MELVILLE, N.Y.

Electronics and computer products distributor Arrow Electronics Inc. on Wednesday said its second-quarter profit increased more than fivefold, led by strong growth in sales of components.

The results easily beat Wall Street expectations, and Arrow issued third-quarter profit and revenue forecasts that also topped analyst estimates. Shares of Arrow rose more than 2 percent in afternoon trading.

Arrow reported net income of $116.2 million, or 96 cents per share, for the three months that ended July 3 compared with a profit of $21.1 million, or 18 cents per share, in last year's second quarter.

Excluding $4.1 million in after-tax restructuring charges and a nearly $1 million loss on prepayment of debt, Arrow's adjusted profit in the latest quarter was nearly $121.3 million, or $1.01 per share. Analysts surveyed by Thomson Reuters had been expecting an adjusted profit of 81 cents per share.

Sales jumped 36 percent to $4.61 billion from $3.39 billion a year earlier, topping analysts' average estimate of $4.44 billion.

Component sales increased 44 percent to $3.26 billion, while sales at Arrow's enterprise computing solutions business rose 21 percent to $1.35 billion.

In the third quarter, the Melville-based company expects earnings per share, excluding any one-time charges, of 96 cents to $1.06 on sales of $4.39 billion to $4.79 billion. Those ranges are above analysts' expectations for an adjusted profit of 76 cents per share and sales of $4.36 billion.

Shares of Arrow rose 53 cents to $24.67 in afternoon trading. The stock has traded in a 52-week range of $21.76 to $32.50.