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NETGEAR (NTGR) Reliance on International Sales: What Investors Need to Know
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Have you evaluated the performance of NETGEAR, Inc.'s (NTGR - Free Report) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of NTGR's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $182.85 million, showing decrease of 7.6%. We will now explore the breakdown of NTGR's overseas revenue to assess the impact of its international operations.
Trends in NTGR's Revenue from International Markets
Of the total revenue, $22.3 million came from APAC during the last fiscal quarter, accounting for 12.20%. This represented a surprise of +0.42% as analysts had expected the region to contribute $22.21 million to the total revenue. In comparison, the region contributed $21.04 million, or 14.62%, and $21.14 million, or 10.69%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, EMEA contributed $32.8 million in revenue, making up 17.94% of the total revenue. When compared to the consensus estimate of $31.67 million, this meant a surprise of +3.56%. Looking back, EMEA contributed $27.36 million, or 19.01%, in the previous quarter, and $35.68 million, or 18.04%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that NETGEAR will report a total revenue of $167.47 million, which reflects a decline of 11.2% from the same quarter in the previous year. The revenue contributions are expected to be 14.4% from APAC ($24.04 million) and 19.8% from EMEA ($33.1 million).
For the full year, the company is expected to generate $652.8 million in total revenue, down 11.9% from the previous year. Revenues from APAC and EMEA are expected to constitute 13.9% ($90.76 million) and 18.9% ($123.31 million) of the total, respectively.
Key Takeaways
NETGEAR's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings 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.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
A Review of NETGEAR's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 18%, against an upturn of 0.4% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts NETGEAR among its entities, has appreciated by 2.1%. Over the past three months, the company's shares have seen an increase of 50% versus the S&P 500's 5.5% increase. The sector overall has witnessed an increase of 5.5% over the same period.
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NETGEAR (NTGR) Reliance on International Sales: What Investors Need to Know
Have you evaluated the performance of NETGEAR, Inc.'s (NTGR - Free Report) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of NTGR's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $182.85 million, showing decrease of 7.6%. We will now explore the breakdown of NTGR's overseas revenue to assess the impact of its international operations.
Trends in NTGR's Revenue from International Markets
Of the total revenue, $22.3 million came from APAC during the last fiscal quarter, accounting for 12.20%. This represented a surprise of +0.42% as analysts had expected the region to contribute $22.21 million to the total revenue. In comparison, the region contributed $21.04 million, or 14.62%, and $21.14 million, or 10.69%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, EMEA contributed $32.8 million in revenue, making up 17.94% of the total revenue. When compared to the consensus estimate of $31.67 million, this meant a surprise of +3.56%. Looking back, EMEA contributed $27.36 million, or 19.01%, in the previous quarter, and $35.68 million, or 18.04%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that NETGEAR will report a total revenue of $167.47 million, which reflects a decline of 11.2% from the same quarter in the previous year. The revenue contributions are expected to be 14.4% from APAC ($24.04 million) and 19.8% from EMEA ($33.1 million).For the full year, the company is expected to generate $652.8 million in total revenue, down 11.9% from the previous year. Revenues from APAC and EMEA are expected to constitute 13.9% ($90.76 million) and 18.9% ($123.31 million) of the total, respectively.
Key Takeaways
NETGEAR's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings 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.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At present, NETGEAR holds a Zacks Rank #1 (Strong Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of NETGEAR's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 18%, against an upturn of 0.4% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts NETGEAR among its entities, has appreciated by 2.1%. Over the past three months, the company's shares have seen an increase of 50% versus the S&P 500's 5.5% increase. The sector overall has witnessed an increase of 5.5% over the same period.