Have you looked into how Applied Materials (AMAT Quick QuoteAMAT - Free Report) performed internationally during the quarter ending October 2024? Considering the widespread global presence of this maker of chipmaking equipment, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.

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 AMAT'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 company's total revenue for the quarter stood at $7.05 billion, increasing 4.8% year over year. Now, let's delve into AMAT's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Unveiling Trends in AMAT's International Revenues

During the quarter, Japan contributed $581 million in revenue, making up 8.25% of the total revenue. When compared to the consensus estimate of $582.09 million, this meant a surprise of -0.19%. Looking back, Japan contributed $555 million, or 8.19%, in the previous quarter, and $681 million, or 10.13%, in the same quarter of the previous year.

Of the total revenue, $1.17 billion came from Korea during the last fiscal quarter, accounting for 16.64%. This represented a surprise of +11.57% as analysts had expected the region to contribute $1.05 billion to the total revenue. In comparison, the region contributed $1.1 billion, or 16.26%, and $745 million, or 11.08%, to total revenue in the previous and year-ago quarters, respectively.

Southeast Asia generated $314 million in revenues for the company in the last quarter, constituting 4.46% of the total. This represented a surprise of +22.38% compared to the $256.58 million projected by Wall Street analysts. Comparatively, in the previous quarter, Southeast Asia accounted for $428 million (6.31%), and in the year-ago quarter, it contributed $168 million (2.50%) to the total revenue.

China accounted for 30.32% of the company's total revenue during the quarter, translating to $2.14 billion. Revenues from this region represented a surprise of -24.51%, with Wall Street analysts collectively expecting $2.83 billion. When compared to the preceding quarter and the same quarter in the previous year, China contributed $2.15 billion (31.76%) and $2.96 billion (44.07%) to the total revenue, respectively.

Of the total revenue, $405 million came from Europe during the last fiscal quarter, accounting for 5.75%. This represented a surprise of +6.02% as analysts had expected the region to contribute $382 million to the total revenue. In comparison, the region contributed $339 million, or 5.00%, and $441 million, or 6.56%, to total revenue in the previous and year-ago quarters, respectively.

Taiwan accounted for 18.23% of the company's total revenue during the quarter, translating to $1.28 billion. Revenues from this region represented a surprise of +36.28%, with Wall Street analysts collectively expecting $942.21 million. When compared to the preceding quarter and the same quarter in the previous year, Taiwan contributed $1.15 billion (16.94%) and $922 million (13.71%) to the total revenue, respectively.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Applied Materials to report $7.15 billion in total revenue for the current fiscal quarter, indicating an increase of 6.6% from the year-ago quarter. Japan, Korea, Southeast Asia, China, Europe and Taiwan are expected to contribute 7.9% ($561.98 million), 16% ($1.14 billion), 4% ($282.43 million), 39.5% ($2.82 billion), 5.2% ($370.35 million) and 13.4% ($957.01 million) to the total revenue, respectively.

For the full year, a total revenue of $29.72 billion is expected for the company, reflecting an increase of 9.4% from the year before. The revenues from Japan, Korea, Southeast Asia, China, Europe and Taiwan are expected to make up 7.9%, 15.6%, 4.2%, 38.6%, 5.1% and 14.2% of this total, corresponding to $2.35 billion, $4.65 billion, $1.25 billion, $11.46 billion, $1.52 billion and $4.21 billion respectively.

The Bottom Line

The dependency of Applied Materials on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

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.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Currently, Applied Materials holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Applied Materials' Stock Value

Over the past month, the stock has seen a decline of 9.4% in its value, whereas the Zacks S&P 500 composite has posted an increase of 1.1%. The Zacks Computer and Technology sector, Applied Materials' industry group, has ascended 0.6% over the identical span. In the past three months, there's been a decline of 16.7% in the company's stock price, against a rise of 6.2% in the S&P 500 index. The broader sector has increased by 3.9% during this interval.