Arrow Electronics Profit Falls - Update

(RTTNews) - Arrow Electronics Inc. (ARW) Wednesday reported a lower fourth-quarter profit, hurt by one-time charges and the absence of gains recorded a year ago. Meanwhile, sales climbed 14 percent on growth at component sales and enterprise computing segments. Results for the quarter topped Wall Street estimates.

Moving ahead, the company provided some weak adjusted earnings outlook for the first quarter.

Arrow supplies products to industrial and commercial users of electronic components and enterprise computing solutions.

The Englewood, Colorado-based company posted fourth-quarter net income of $135 million or $1.32 per share, compared with $175 million4, or $1.62 per share last year.

Results for the quarter included restructuring charges of $13 million and income tax adjustments of $15 million. The prior year included a legal-matter settlement gain of $48.6 million.

Excluding items, adjusted earnings for the quarter were $172 million or $1.69 per share, compared $140 million or $1.29 per share in the prior year.

On average, 12 analysts polled by Thomson Reuters estimated earnings of $1.62 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed to $6.15 billion from $5.4 billion in the prior year, and topped analysts' projections of $5.82 billion.

Components sales increased 8 percent from last year and enterprise computing solutions sales gained 23 percent.

For the first quarter, Arrow projects adjusted earnings of $1.14 to $1.26 per share and sales of $5.1 billion and $5.5 billion. Analysts currently expect earnings of $1.23 per share on sales of $5.32 billion for the quarter.

Shares of Arrow Electronics are trading at $48.18, down $1.33 or 2.69%, on the NYSE.