Arrow Electronics (NYSE: ARW) reported Q4 EPS of $3.17, $0.50 better than the analyst estimate of $2.67. Revenue for the quarter came in at $8.45 billion versus the consensus estimate of $7.8 billion.

• Fourth-Quarter Earnings Per Share of $3.08; Non-GAAP Earnings Per Share of $3.17
• Full-Year Cash Provided by Operating Activities of $1.36 Billion

“Arrow’s talented team works hard every day to help customers and suppliers overcome design, engineering, and supply chain challenges – and this commitment was more evident than ever in 2020. Despite the uncertain environment, Arrow drove exceptional financial performance and built on our reputation as a trusted partner for customers and suppliers, with innovative products and solutions,” said Michael J. Long, chairman, president, and chief executive officer. “It was a remarkable accomplishment to end the year with record fourth-quarter sales, net income, and earnings per share.”

Global components fourth-quarter sales of $5.92 billion increased 25 percent year over year. Non-GAAP sales increased 23 percent year over year. Asia-Pacific components sales increased 54 percent year over year. Non-GAAP sales in the region increased 53 percent year over year. Europe components sales increased 15 percent year over year. Non-GAAP sales in the region increased 7 percent year over year. Americas components sales decreased 1 percent year over year. Non-GAAP sales in the region remained flat year over year. Global components fourth-quarter operating income was $230 million. Fourth-quarter non-GAAP operating income was $236 million.

“We have long discussed the potential to pioneer value-added distribution in Asia, and our belief that Arrow is well-positioned to increase the scale of our Asia components business leading to higher profit levels. We also saw a compelling opportunity for global components to accelerate profit growth and expansion as soon as demand from end-customers stabilizes and improves,” continued Mr. Long. “Our focused execution delivered on both accounts, despite the ongoing COVID-19 pandemic.”

Global enterprise computing solutions fourth-quarter sales of $2.53 billion decreased 3 percent year over year. Non-GAAP sales decreased 5 percent year over year. Europe enterprise computing solutions sales increased 9 percent year over year. Non-GAAP sales in the region increased 2 percent year over year. Americas enterprise computing sales decreased 10 percent year over year. Global enterprise computing solutions fourth-quarter operating income was $156 million. Fourth-quarter non-GAAP operating income was $158 million.

“Global enterprise computing solutions is starting off 2021 on solid footing having returned to operating income growth in the fourth quarter on higher operating margins,” concluded Mr. Long.

GUIDANCE:

Arrow Electronics sees FY2021 EPS of $2.17-$2.33, versus the consensus of $1.89. Arrow Electronics sees FY2021 revenue of $7.625-8.225 billion, versus the consensus of $6.93 billion.

• Consolidated sales of $7.625 billion to $8.225 billion, with global components sales of $5.825 billion to $6.125 billion, and global enterprise computing solutions sales of $1.8 billion to $2.1 billion
• Net income per share on a diluted basis of $2.02 to $2.18, and non-GAAP net income per share on a diluted basis1 of $2.17 to $2.33
• Average tax rate of approximately 24.5% percent compared to the long-term range of 23 to 25 percent
• Average diluted shares outstanding of 76 million
• Interest expense of approximately $31 million
• Expecting average USD-to-Euro exchange rate of $1.23 to €1; changes in foreign currencies to increase sales by approximately $235 million, and earnings per share on a diluted basis by $.12 compared to the first quarter of 2020

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