Arrow Electronics, Inc. (ARW) recently upgraded its outlook for the fourth quarter of 2009. The company now expects revenues to come between $3.8 billion and $4.2 billion in the December quarter, up from the previous guidance of $3.65 billion to $4.25 billion.
Management stated that the upgrade in guidance was driven by stronger than expected growth in the components business. However, sales in the last few weeks of December will determine sales of the computing solutions business. Earnings per share (EPS) are now projected between $0.57 and $0.63, up from the earlier estimate of $0.44 $0.56.
We expect overall demand to improve going forward with the economy showing signs of recovery. We upgrade our rating to OUTPERFORM from NEUTRAL.Zacks Investment Research
