Arrow Electronics Inc.
) recently introduced its cloud portal especially designed for
providing field-programmable gate array (FPGA) power solutions to
clients in North America, and EMEA region. The company's latest
Arrow FPGA Power Designer will offer an excellent platform to
maximize the total power distribution process.
The new FPGA Power Designer has various features including
advanced FPGA products from
) and a wide range of converters. Arrow Lighting Designer combined
with this new cloud-based channel is expected to improve the entire
power design process. Management averred that, with the help of
this new platform, the engineers will be able to easily configure
the power supply system in less time.
The company's newly introduced product range including
ArrowSphere, UC in the Cloud solutions and Live Virtual Help Desk
services are likely to mitigate the increasing demand in the
industry and help to enhance the revenue streams of its clients.
Additionally, the company's broad portfolio of products and
services and its continued efforts to provide maximum consumer
satisfaction have done both - elevated company position and
rendered it adequately secure to warrant a substantial market share
in the present scenario.
However, Arrow Electronics recently reported total sales of
$5.15 billion in the second quarter of 2012, down 7% year over year
and 5.3% sequentially. The current macro-economic challenges
prevailing in the European region and slow growth in China
adversely affected the company's businesses in the quarter.
Arrow currently faces ominous competition from major players of
the industry, which include
Richardson Electronics Ltd.
) . In order to retain its position in the global market, it is
imperative that the company continues to make such momentous
undertakings, keeping in mind the betterment of the organization in
both the long and short run.
The current Zacks Consensus Estimate for the third quarter of
2012 is $1.04, reflecting a year-over-year growth of (13.52%).
Estimates for 2012 and 2013 are $4.53 and $5.07, representing
annual growth of (12.64%) and 11.82%, respectively. We currently
maintain an 'Underperform' recommendation on Arrow. The stock
carries a Zacks #3 Rank, translating into a short-term (1-3 months)
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