Benzinga | Feb 3, 2021 10:11AM EST

Earnings Outlook For Arrow Electronics

On Thursday, February 04, Arrow Electronics (NYSE:ARW) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Arrow Electronics EPS will likely be near $2.67 while revenue will be around $7.80 billion, according to analysts. Arrow Electronics reported a profit of $2.2 per share when it published results during the same quarter last year. Sales in that period totaled $7.34 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 21.36% increase in the company's earnings. Sales would be up 6.3% from the same quarter last year. Arrow Electronics's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.65 1.44 1.12 2.17EPS Actual 2.08 1.59 0.97 2.20Revenue Estimate 6.71 B 6.36 B 6.18 B 7.33 BRevenue Actual 7.23 B 6.61 B 6.38 B 7.34 B

Stock Performance

Over the last 52-week period, shares are up 26.86%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Arrow Electronics is scheduled to hold the call at 13:00:00 ET and can be accessed here.