Arrow Electronics Inc. (NYSE: ARW) saw its stock plummet 6.85% on October 31, 2024, after the company reported mixed third-quarter results and announced a multi-year restructuring plan.

The electronics distributor reported revenue of $6.82 billion for the third quarter of 2024, beating analyst estimates but marking a 15% decline from the same period last year. The drop was primarily driven by a cyclical correction in the company's global components business, which saw sales fall 21% year-over-year to $4.95 billion.

On the positive side, Arrow's global enterprise computing solutions (ECS) segment posted a 7% increase in sales to $1.88 billion, driven by strong demand for hybrid cloud solutions and steady market dynamics in Europe.

Arrow's non-GAAP earnings per diluted share came in at $2.38, surpassing analyst expectations of $2.22. However, the company's net income attributable to shareholders declined 49% year-over-year to $100.6 million.

In response to the challenging market conditions, Arrow announced a multi-year restructuring plan aimed at streamlining operations and improving profitability. The plan includes consolidating certain business areas, winding down non-core operations, and reducing third-party spending.

The company expects to incur pre-tax restructuring charges of approximately $185 million through the end of fiscal 2026. However, it anticipates annual operating expense savings of $90 million to $100 million by the end of the same period.

Looking ahead, Arrow provided fourth-quarter guidance for sales of $6.67 billion to $7.27 billion and non-GAAP earnings per share of $2.48 to $2.68.

Analysts expressed concerns about the ongoing cyclical downturn in the components industry and the potential impact of the restructuring efforts on Arrow's near-term profitability.