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Will Arrow Electronics (ARW) Q3 Earnings Post a Surprise?
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Arrow Electronics Inc. (ARW - Free Report) is set to report third-quarter 2016 results on Nov 3. Last quarter, the company posted a negative earnings surprise of 0.6%. Let us see how things are shaping up for this announcement.
Factors to Consider
The electronic component distributor’s second-quarter 2016 results missed estimates on both fronts. However, the metrics improved year over year.
Most recently, the company inked a deal with Samsung Electronics Co. Ltd. to bring the newly launched SAMSUNG ARTIK™ Smart IoT platform to Arrow's global ecosystem of customers and suppliers. “The fully integrated, complete chip-to-cloud solution accelerates product development, reduces time-to-market and improves total cost of ownership for internet of things (IoT) products.”
Notably, original equipment manufacturers, contract manufacturers and commercial customers are selecting Arrow’s distribution channels for marketing their products. The company’s core strength in providing best-in-class services and easy-to-acquire technologies should drive growth.
Meanwhile, incremental sales from strategic acquisitions, such as Computerlinks, are expected to boost the top line, going forward. However, uncertain economic conditions, high debt burden and competition from the likes of Avnet (AVT - Free Report) and Ingram Micro remain concerns.
Our proven model does not conclusively show that Arrow Electronicsis likely to beat the Zacks Consensus Estimate in its upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Arrow Electronics is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.51 per share. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Arrow Electronicshas a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Methanex Corporation (MEOH - Free Report) with an Earnings ESP of +100.0% and a Zacks Rank #3
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Will Arrow Electronics (ARW) Q3 Earnings Post a Surprise?
Arrow Electronics Inc. (ARW - Free Report) is set to report third-quarter 2016 results on Nov 3. Last quarter, the company posted a negative earnings surprise of 0.6%. Let us see how things are shaping up for this announcement.
Factors to Consider
The electronic component distributor’s second-quarter 2016 results missed estimates on both fronts. However, the metrics improved year over year.
Most recently, the company inked a deal with Samsung Electronics Co. Ltd. to bring the newly launched SAMSUNG ARTIK™ Smart IoT platform to Arrow's global ecosystem of customers and suppliers. “The fully integrated, complete chip-to-cloud solution accelerates product development, reduces time-to-market and improves total cost of ownership for internet of things (IoT) products.”
Notably, original equipment manufacturers, contract manufacturers and commercial customers are selecting Arrow’s distribution channels for marketing their products. The company’s core strength in providing best-in-class services and easy-to-acquire technologies should drive growth.
Meanwhile, incremental sales from strategic acquisitions, such as Computerlinks, are expected to boost the top line, going forward. However, uncertain economic conditions, high debt burden and competition from the likes of Avnet (AVT - Free Report) and Ingram Micro remain concerns.
ARROW ELECTRONI Price and EPS Surprise
ARROW ELECTRONI Price and EPS Surprise | ARROW ELECTRONI Quote
Earnings Whispers
Our proven model does not conclusively show that Arrow Electronicsis likely to beat the Zacks Consensus Estimate in its upcoming release. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for Arrow Electronics is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.51 per share. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Arrow Electronicshas a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:
Carmike Cinemas Inc. with Earnings ESP of +600.00% and a Zacks Rank #3 You can see the complete list of today’s Zacks #1 Rank stocks here
Methanex Corporation (MEOH - Free Report) with an Earnings ESP of +100.0% and a Zacks Rank #3
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>