CENTENNIAL, Colo. - Arrow Electronics , Inc. (NYSE: NYSE:ARW), a global technology solutions provider, has been selected by Broadcom (NASDAQ:AVGO) as the sole provider for the CloudHealth by VMware (NYSE:VMW) offering, a tool aimed at simplifying financial management and operations across multi-cloud environments. The announcement was made public today.
According to Eric Nowak, president of global enterprise computing solutions at Arrow, the company's extensive expertise with Broadcom and VMware technology, along with its established cloud delivery and management services, will facilitate a smooth transition for partners and customers utilizing CloudHealth. Arrow's role will include providing sales, marketing, and technical support to enhance the user experience and maximize the value derived from the platform.
Cynthia Loyd, vice president of global partner and commercial sales at Broadcom, emphasized Arrow's innovation and operational excellence as key factors in executing Broadcom's global go-to-market strategy. Through Arrow's talent and reach, CloudHealth is expected to become accessible to a broader range of businesses while adding value for current users.
Starting May 6, CloudHealth will be available through ArrowSphere, Arrow's cloud marketplace. This addition to Arrow's cloud portfolio is intended to offer organizations increased flexibility, scalability, and affordability in cloud management and optimization.
Arrow assures that there will be no service outage for CloudHealth, including for customers accessing it through the AWS marketplace. Partners and customers currently engaged with CloudHealth are directed to transition their business to Arrow seamlessly.
Arrow Electronics, with 2023 sales of $33 billion, specializes in guiding innovation for technology manufacturers and service providers, developing solutions that enhance business and everyday life.
This report is based on a press release statement.
InvestingPro Insights
Arrow Electronics, Inc. (NYSE: ARW) has recently been appointed as the exclusive provider for the CloudHealth by VMware offering, reinforcing its position as a significant player in the technology solutions sector. In light of this development, let's delve into some key financial metrics and InvestingPro Tips that shed light on the company's current market standing.
With a market capitalization of $6.78 billion, Arrow Electronics is trading at a price-to-earnings (P/E) ratio of 7.99, indicating a lower valuation compared to some of its peers in the Electronic Equipment, Instruments & Components industry. This is further evidenced by the adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at an even more attractive 7.03.
Despite a revenue decline of 10.82% over the last twelve months as of Q4 2023, Arrow's management has been actively working on enhancing shareholder value, as reflected in the aggressive share buybacks and a high shareholder yield. Additionally, the company's valuation implies a strong free cash flow yield, suggesting that Arrow Electronics is generating robust cash flows relative to its share price.
InvestingPro Tips highlight that while analysts anticipate a sales decline in the current year, they also predict that the company will maintain profitability. Arrow Electronics does not pay a dividend, which may be a consideration for income-focused investors. Moreover, the company is recognized as a prominent player in its industry and is trading at a low revenue valuation multiple, which could present an attractive opportunity for value investors.
For those interested in a deeper analysis, there are over 10 additional InvestingPro Tips available on Arrow Electronics, which can be found at https://www.investing.com/pro/ARW. And remember, you can now get an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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