CENTENNIAL, Colo. - Arrow Electronics , Inc. (NYSE:ARW), a technology solutions provider with a market capitalization of $6.4 billion and a "GOOD" financial health rating according to InvestingPro, has announced the appointment of Lawrence (Liren) Chen to its board of directors and audit committee, expanding the board's total number of directors to 10. This strategic addition was made public today.
Chen brings a wealth of experience to the board, currently serving as the president, CEO, and a board member of InterDigital (NASDAQ:IDCC), Inc., a company at the forefront of wireless, video, AI, and related technology research and development. His extensive background includes a nearly 25-year tenure at Qualcomm Inc (NASDAQ:QCOM)., where he reached the position of senior vice president, global head of IP, legal counsel. In this role, Chen was responsible for managing Qualcomm's intellectual property portfolio and leading various strategic initiatives.
In addition to his corporate roles, Chen is actively involved in influential committees, including the U.S. Chamber of Commerce China Advisory Committee and the Council for Inclusive Innovation of the U.S. Patent and Trademark Office.
Arrow Electronics, with 2023 global sales reaching $33 billion, is a significant player in the technology sector, providing a range of solutions for manufacturers and service providers across major industries and markets. Trading at a P/E ratio of 13.6, the company's stock currently appears undervalued according to InvestingPro Fair Value analysis, with management actively buying back shares to enhance shareholder value.
The appointment of Chen is expected to further enhance Arrow's governance and strategic planning, given his vast experience in technology and intellectual property. This move is part of the company's ongoing efforts to strengthen its leadership and competitive position in the industry. While analysts anticipate a sales decline in the current year, the company maintains strong fundamentals with a healthy current ratio of 1.46. Discover more insights about Arrow Electronics' financial outlook in the comprehensive Pro Research Report, available exclusively on InvestingPro.
The information for this article is based on a press release statement from Arrow Electronics.
In other recent news, Arrow Electronics has made significant strides in its business operations. The technology solutions provider recently expanded its VMware (NYSE:VMW) offerings across North America, an enhancement that marks a substantial extension of Arrow's portfolio. This expansion provides channel partners with access to a comprehensive suite of VMware products through the ArrowSphere platform.
In financial news, Arrow Electronics reported third-quarter 2024 results that exceeded expectations, with consolidated sales of $6.8 billion and non-GAAP earnings per share (EPS) of $2.38. Notably, this was despite a 15% year-over-year sales decline. The company also announced cost reduction plans expected to save $90 million to $100 million by 2026, with $135 million in restructuring expenses anticipated.
Truist Securities adjusted its price target on Arrow Electronics, reducing it to $120 from the previous $141, while maintaining a Hold rating. The firm cited concerns about the electronics supply chain and a potentially problematic supplier transition as reasons for the adjustment.
In other company developments, Arrow Electronics plans to exit non-core product lines, leading to a $50 million non-cash charge in Q4. Despite challenges within the Global Components due to excess inventory and macroeconomic headwinds, the company reported strong cash generation, with $1.1 billion in operating cash flow over the past year. These are recent developments for Arrow Electronics.
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