Arrow Electronics (ARW) Q2 Earnings Report Preview: What To Look For

Global electronics components and solutions distributor Arrow Electronics (NYSE:ARW) will be announcing earnings results tomorrow before the bell. Here's what you need to know.

Arrow Electronics missed analysts' revenue expectations by 1.7% last quarter, reporting revenues of $6.92 billion, down 20.7% year on year. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Is Arrow Electronics a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Arrow Electronics's revenue to decline 23.4% year on year to $6.52 billion, a further deceleration from the 10% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arrow Electronics has missed Wall Street's revenue estimates five times over the last two years.

Looking at Arrow Electronics's peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Worthington's revenues decreased 13.6% year on year, missing analysts' expectations by 9.6%, and Flowserve reported revenues up 7.1%, topping estimates by 2.4%. Worthington traded down 3.4% following the results while Flowserve was also down 3.2%.

Read our full analysis of Worthington's results here and Flowserve's results here.

There has been positive sentiment among investors in the industrial machinery segment, with share prices up 9.4% on average over the last month. Arrow Electronics is up 3.5% during the same time and is heading into earnings with an average analyst price target of $124.8 (compared to the current share price of $123.54).

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