ENGLEWOOD, Colo. (AP) — Arrow Electronics Inc. said Wednesday that its third-quarter net income fell 19 percent, hurt by lower demand at its components business and higher restructuring charges.
Its adjusted earnings beat Wall Street expectations, however, and its shares rose 2 percent in midday trading.
The Englewood, Colo.-based electronics maker earned $103.6 million, or 94 cents per share, for the three months ended Sept. 29, down from $132.2 million, or $1.15 per share, in the same quarter last year.
Restructuring charges jumped 65 percent to $14.6 million. Excluding restructuring charges, the company said it posted adjusted earnings of $1.02 per share for the recent quarter.
Revenue fell 4.3 percent to $4.96 billion from $5.19 billion. Adjusting for acquisitions and excluding the effects of currency exchange rates and a change in the way the company presents revenue, Arrow said revenue was relatively flat compared with a year ago.
The results beat Wall Street predictions. Analysts, on average, expected earnings of 98 cents per share on $4.94 billion in revenue, according to a FactSet poll.
Arrow said its sales of components fell 8 percent to $3.37 billion, while sales at its global computing business increased 3 percent to $1.59 billion.
The company said it expects to post an adjusted fourth-quarter profit of $1.03 to $1.13 per share on $5.1 billion to $5.5 billion in revenue. Analysts expect earnings of $1.23 per share on $5.37 billion in revenue.
Arrow shares rose 73 cents, or 2.1 percent, to $35.28 in midday trading. They are up 14.3 percent from their 52-week low of $30.84 set in mid-July. They peaked for the past year at $43.39 in early February.