Technology
The stock features in BTN’s 3Q24 Focus Risk List which contains companies they believe have a higher risk of reporting an earnings disappointment based on earnings quality. ARW is guiding to its lowest quarter in years on adj. EPS of $2.10-$2.30 along with flat sales. BTN sees considerable risks for sales, earnings and cash flow. ARW’s adj. EPS beat of 62 cents last quarter had considerable help from one-time items. It picked up 29 cents by reversing bad debt reserves, another 2 cents from bad debt issues, 7 cents from falling depreciation, 12 cents from interest expense coming in below forecasts and 8 cents from interest rate swaps. This looks like a simple story of some unsustainable earnings drivers.
Edition: 196
- 04 October, 2024
Technology
According to industry experts interviewed by Blueshift, ARW faces an extremely challenging 2023, as multiple negative trends are building including an increasingly difficult relationship with one of its biggest suppliers, Texas Instruments - ARW is being relegated to smaller (and more economically sensitive) customers with low volume needs for commodity products as TXN continues to ramp up its direct sales operation to cater to bigger customers with custom requirements. To make matters worse, in the low-end market, sources reported that ARW is losing ground with some customers to catalog distributors such as Digi-Key Electronics and Mouser Electronics.
Edition: 153
- 03 February, 2023