Arrow Electronics (NYSE: ARW) Shares Tumble As Q1 Results, Q2 View Miss

Orlando, FL 5/1/12 (StreetBeat) -- Arrow Electronics (NYSE: ARW) shares are trading sharply lower this morning after the electronics distribution giant posteddisappointing Q1 financial results.

For the quarter, Arrow posted sales of $4.89 billion, down from $5.22 billion a year ago, and below the Street consensus forecast at $4.91 billion. Non-GAAP diluted profits were $1.05 a share, below the consensus at $1.08.

For Q2, Arrow sees sales of $5.04 billion to $5.44 billion, with non-GAAP diluted profits of $1.08 to $1.20 a share; Street consensus has been $5.21 billion and $1.23.

Arrow noted that its global enterprise computing solutions group had Q1 sales of $1.54 billion, up 15% from a year ago. “We had very impressive results in the first quarter with sales well above normal seasonality, especially in our North American value-added distribution business,” CEO Mike Long said in a statement. “Globally, we saw robust product line performance in storage, software, and services, which each grew in excess of 20% year over year.”

But he notes that global components Q1 sales of $3.35 billion were off 14%. “The Americas region performed well while weaker macroeconomic conditions in Asia and Europe have had a negative impact on our results,” he said. “Our global book-to-bill of 1.04 to 1 is at its highest level in six quarters with sequential increases seen in all regions. Our global teams remain committed to driving increased market share in all regions while providing the highest possible level of service to our customers.”

ARW this morning is down $3.95, or 9.4%, to $38.10.

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