Arrow Electronics, Inc. Just Beat Earnings Expectations: Here’s What Analysts Think Will Happen Next
It’s been a pretty great week for Arrow Electronics, Inc. (NYSE:ARW) shareholders, with its shares surging 20% to US$159 in the week since its latest yearly results. Arrow Electronics reported US$31b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$10.93 beat expectations, being 6.4% higher than what the analysts expected. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Arrow Electronics’ four analysts is for revenues of US$34.6b in 2026. This reflects a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 7.2% to US$10.38 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$31.6b and earnings per share (EPS) of US$9.20 in 2026. So it seems there’s been a definite increase in optimism about Arrow Electronics’ future following the latest results, with a decent improvement in the earnings per share forecasts in particular.
See our latest analysis for Arrow Electronics
With these upgrades, we’re not surprised to see that the analysts have lifted their price target 27% to US$138per share. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Arrow Electronics at US$165 per share, while the most bearish prices it at US$115. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Arrow Electronics is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2026. If achieved, this would be a much better result than the 3.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So while Arrow Electronics’ revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Arrow Electronics following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Arrow Electronics will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have forecasts for Arrow Electronics going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Arrow Electronics that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
