Have you looked into how Waters (WAT) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this maker of products used in drug discovery and development, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining WAT's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The recent quarter saw the company's total revenue reaching $636.84 million, marking a decline of 7% from the prior-year quarter. Next, we'll examine the breakdown of WAT's revenue from abroad to comprehend the significance of its international presence.

Decoding WAT's International Revenue Trends

Of the total revenue, $207.56 million came from Asia during the last fiscal quarter, accounting for 32.6%. This represented a surprise of -4.05% as analysts had expected the region to contribute $216.33 million to the total revenue. In comparison, the region contributed $261.89 million, or 32%, and $253.08 million, or 37%, to total revenue in the previous and year-ago quarters, respectively.

Europe accounted for 29.5% of the company's total revenue during the quarter, translating to $188.11 million. Revenues from this region represented a surprise of +5.01%, with Wall Street analysts collectively expecting $179.13 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $253.84 million (31%) and $185.17 million (27.1%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

It is projected by analysts on Wall Street that Waters will post revenues of $697.65 million for the ongoing fiscal quarter, a decline of 5.8% from the year-ago quarter. The expected contributions from Asia and Europe to this revenue are 35% and 29.9%, translating into $244.32 million and $208.8 million, respectively.

For the full year, a total revenue of $2.98 billion is expected for the company, reflecting an increase of 0.7% from the year before. The revenues from Asia and Europe are expected to make up 33.4% and 28.7% of this total, corresponding to $994.46 million and $854.8 million respectively.

In Conclusion

Waters' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Waters currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Waters' Recent Stock Price Trends

Over the past month, the stock has gained 8.8% versus the Zacks S&P 500 composite's 1.3% increase. The Zacks Medical sector, of which Waters is a part, has risen 1.7% over the same period. The company's shares have increased 8% over the past three months compared to the S&P 500's 4.3% increase. Over the same period, the sector has declined 1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Waters Corporation (WAT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research