Arrow Electronics (ARW) stock plunged 5.28% in pre-market trading on Friday, despite reporting better-than-expected third-quarter results. The sharp decline comes as multiple analysts cut their price targets for the electronic components distributor, raising concerns about the company's future outlook.

Arrow Electronics reported fiscal Q3 non-GAAP earnings of $2.41 per diluted share, surpassing analysts' expectations of $2.32. The company's consolidated sales for the quarter reached $7.71 billion, slightly above the forecasted $7.69 billion. However, the positive earnings report was overshadowed by a series of price target cuts from major financial institutions.

Raymond James lowered its target price for Arrow Electronics from $135 to $124, while Wells Fargo reduced its target from $98 to $94. Truist Securities also joined the bearish sentiment, cutting its price target to $120 from $124. These downgrades suggest that analysts may be concerned about the company's growth prospects or potential headwinds in the electronics industry, despite the strong Q3 performance. Investors appear to be reacting to these negative signals, leading to the significant pre-market sell-off.