Back to top

Analyst Blog

Arrow Electronics, Inc. (ARW - Analyst Report) recently entered into a distribution agreement with Altia, Inc. This will introduce Altia’s wide range of user interface development techniques to Arrow’s distribution channel database catering to the needs of its comprehensive clientele in North America.

The venture undertaken is to directly distribute Altia’s advanced and customized graphical user interfaces with the help of the company’s key silicon partners. By adding these solutions to its offerings, Arrow will be engaged in supporting various companies, which use less costly or high power graphics.

Management expressed its enthusiasm about the partnership by stating that this agreement would allow Arrow to provide best-in-class graphical interface services in the area of medical, building control, automation and industrial control, and retail and information kiosks. These solutions would easily cater to the needs of Arrow’s clients.

Recently Arrow’s operating unit, Arrow Enterprise Computing Solutions (ECS), signed a distribution agreement with Emerson Network Power. With this contract, the company will distribute Emerson’s wide range of enterprise data center infrastructure management (DCIM) services to its comprehensive clientele in the United States. We believe that this latest agreement would further enhance the company’s performance moving ahead.

However, it should be noted that the company’s domestic and foreign operations are subject to significant competitive pressures from the likes of Richardson Electronics Ltd. and Avnet, Inc. (AVT - Analyst Report). Avnet’s operating unit, Avnet Electronics Marketing Americas, recently entered into a distribution contract with Measurement Specialties, Inc. . Hence, to compete successfully, Arrow must excel in terms of product quality and innovation, customer service, technical and computing capabilities and price competitiveness.

The current Zacks Consensus Estimates for Arrow are $1.09 and $4.27 for the fourth quarter of 2012 and for 2012, respectively. The estimates represent a year-over-year growth of (21.34%) for the fourth quarter and (17.78%) for 2012. The company currently retains a Zacks #4 Rank, which translates into a short-term ‘Sell’ rating. We also maintain a long-term ‘Neutral’ recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%