Global Enterprise Computing Solutions
“Our enterprise computing solutions business continues to navigate a mixed IT spending environment. In EMEA, we once again achieved year-on-year billings and gross profit dollar growth in the first quarter, and in North America, we continued to make progress in the market for IT-as-a-service. Looking forward we’re well-positioned to serve the growing demand for cloud and AI-driven solutions,” said Mr. Kerins.
Global Enterprise Computing Solutions (ECS) |
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Quarter Ended |
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March 30, |
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April 1, |
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(in millions) |
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2024 |
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2023 |
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Global ECS sales |
|
$ |
1,733 |
|
$ |
1,881 |
Global ECS operating income, as reported |
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|
71 |
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|
81 |
Global ECS non-GAAP operating income |
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|
73 |
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82 |
In the first quarter of 2024, global ECS sales decreased 8 percent year over year and decreased 9 percent year over year on a constant currency basis. Europe ECS first-quarter sales decreased 7 percent year over year and decreased 8 percent year over year on a constant currency basis. Americas ECS first-quarter sales decreased 9 percent year over year.
Other Financial Metrics
“In the first quarter, we generated $403 million in cash flow from operations,” said Raj Agrawal, Arrow’s senior vice president and chief financial officer. “Efficient working capital management enabled us to reduce inventory by $390 million in the first quarter and more than $1 billion over the past two quarters. Our strong cash flow generation continued to provide us with ample financial flexibility, and we also repurchased approximately $100 million of shares in the quarter.”
1 A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the reconciliation tables included herein.
Second-Quarter 2024 Outlook
- Consolidated sales of $6.20 billion to $6.80 billion, with global components sales of $4.60 billion to $5.00 billion, and global enterprise computing solutions sales of $1.60 billion to $1.80 billion
- Net income per share on a diluted basis of $1.65 to $1.85, and non-GAAP net income per share on a diluted basis of $2.05 to $2.25
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $75 million
- Changes in foreign currencies to decrease sales by approximately $51 million, and earnings per share on a diluted basis by $0.04 compared to the second quarter of 2023
- Changes in foreign currencies to decrease quarter-over-quarter growth in sales by $29 million and earnings per share on a diluted basis by $0.04 compared to the first quarter of 2024
Second-Quarter 2024 GAAP to non-GAAP Outlook Reconciliation |
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NON-GAAP SALES RECONCILIATION |
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Quarter Ended |
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Quarter Ended |
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June 29, |
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July 1, |
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June 29, |
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March 30, |
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(in billions) |
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2024 |
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2023 |
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% Change |
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2024 |
|
2024 |
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% Change |
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| Global components sales, GAAP |
|
$ |
4.60 - 5.00 |
|
$ |
6.68 |
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(31%) - (25%) |
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$ |
4.60 - 5.00 |
|
$ |
5.19 |
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(11%) - (4%) |
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| Impact of changes in foreign currencies |
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|
— |
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(0.04 |
) |
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|
|
— |
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(0.02 |
) |
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||
| Global components sales, constant currency |
|
$ |
4.60 - 5.00 |
|
$ |
6.64 |
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|
(31%) - (25%) |
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$ |
4.60 - 5.00 |
|
$ |
5.17 |
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(11%) - (3%) |
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| Global ECS sales, GAAP |
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$ |
1.60 - 1.80 |
|
$ |
1.83 |
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(13%) - (2%) |
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$ |
1.60 - 1.80 |
|
$ |
1.73 |
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|
(8%) - 4% |
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| Impact of changes in foreign currencies |
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|
— |
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|
(0.01 |
) |
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|
|
— |
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|
(0.01 |
) |
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| Global ECS sales, constant currency |
|
$ |
1.60 - 1.80 |
|
$ |
1.82 |
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|
(12%) - (1%) |
|
$ |
1.60 - 1.80 |
|
$ |
1.72 |
|
|
(7%) - 4% |
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| NON-GAAP EARNINGS RECONCILIATION |
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Reported GAAP measure |
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Intangible amortization
|
|
Restructuring &
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Non-GAAP measure |
| Net income per diluted share |
|
$1.65 to $1.85 |
|
$0.10 |
|
$0.30 |
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$2.05 to $2.25 |
