By Colin Kellaher
Arrow Electronics shares fell more than 10% on Thursday after the electronics components provider offered disappointing guidance and said it is launching a multi-year restructuring plan aimed at improving operational efficiency.
Shares of the Centennial, Colo., company, which it a new 52-week high during Wednesday's session, were recently down 11% to $120.25 in early trading Thursday.
Arrow said it expects $185 million in restructuring expenses over the next two years, including about $110 million of employee severance and other personnel cash spending and roughly $50 million of costs to exit some non-core business lines.
The Centennial, Colo., company didn't specify how many jobs it plans to shed in the restructuring, which it said is aimed at reducing annual operating expenses by $90 million to $100 million by the end of 2026.
Arrow currently has more than 22,000 employees, according to data from FactSet.
The restructuring comes as Arrow reported third-quarter sales and earnings that topped Wall Street's expectations but forecast fourth-quarter results that fell shy of views.
The company said it expects fourth-quarter adjusted earnings of $2.48 to $2.68 a share on sales of $6.67 billion to $7.27 billion. Analysts polled by FactSet, on average, had penciled in adjusted earnings of $3.42 a share and sales of $7.25 billion for the period.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 31, 2024 10:02 ET (14:02 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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