Arrow Electronics stock falls after profit warning, cuts

Shares of Arrow Electronics Inc. fell more than 6% in the extended session Monday after the electronic components distributor warned about lower second-quarter adjusted earnings and said it was winding down one of its businesses, pinning it on "deteriorating demand conditions." Arrow said it expects second-quarter sales of about $7.3 billion, and a loss in the range of $6.35 a share and $6.23 a share for the quarter. Adjusted for one-time items, Arrow sees it reporting per-share earnings between $1.50 to $1.62 a share. Analysts polled by FactSet had expected adjusted EPS of $1.95 on sales of $7.6 billion for the quarter. The company is scheduled to report on Aug. 1. "While we are disappointed that our anticipated results for the second quarter are lower than we had initially expected due to deteriorating demand conditions in the global components business, we remain confident in our long-term strategy and our ability to generate strong cash flow," Chief Executive Michael J. Long said in a statement. Arrow's personal computer and mobility asset disposition business will close, allowing the company to focus on "next generation" technologies such as artificial intelligence, smart cities and vehicles, Arrow said. The company also embarked on a cost-cutting program it hopes will save about $130 million in annualized savings.

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