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January 23, 2012
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Arrow Electronics, Inc. (ARW) recently announced its decision to acquire TechTurn, Ltd. to proliferate and further diversify its current horizon of technology services as well as enhance its core business services. The acquisition, subject to regulatory ratification, is expected to close within 45 days of announcement date.
Headquartered in Austin, Texas, TechTurn is an electronic asset disposition (EAD) services provider which possesses a broad portfolio catering to technology recovery, refurbishing and remarketing services which they globally offer, primarily to major Fortune 500 companies.
The acquisition appears to be a profitable one as TechTurn has been yielding favorable results of late with revenues to surpass $50 million approximately in 2012.
After Beijing based Seed International Ltd., TechTurn is the next major acquisition executed by Arrow in recent times.
We previously witnessed strong third quarter for Arrow Electronics, whereby it recorded a commendable year-over-year revenue growth of 11% to around $5.2 billion. On February 1, 2012, the company is expected to declare its December quarter financial results and hence, provide a comprehensive view of the financial position of its full fiscal year, 2011.
We currently find Arrow in quite a comfortable position to battle its existing competitive threats in the wholesale electronics industry. Hence, we have a Zacks Consensus Estimate of $1.29 per share for its last 2011 quarter, rising 7.5% sequentially and $5.10 per share for full year 2011.
In the short run, we have a Zacks #4 Rank for Arrow Electronics, which translates into a short-term rating of Sell. We currently have a long-term rating of Neutral for the company’s stock.
Read the full analyst report on "ARW"
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