Have you looked into how Garmin (GRMN Quick QuoteGRMN - Free Report) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this maker of personal navigation devices, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Upon examining GRMN'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 $1.82 billion, increasing 22.9% year over year. Now, let's delve into GRMN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Exploring GRMN's International Revenue Patterns

EMEA accounted for 38.49% of the company's total revenue during the quarter, translating to $701.52 million. Revenues from this region represented a surprise of +19.43%, with Wall Street analysts collectively expecting $586.95 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $612.66 million (38.63%) and $523.44 million (35.31%) to the total revenue, respectively.

Of the total revenue, $266.49 million came from APAC during the last fiscal quarter, accounting for 14.62%. This represented a surprise of -0.71% as analysts had expected the region to contribute $268.39 million to the total revenue. In comparison, the region contributed $248.79 million, or 15.69%, and $226.41 million, or 15.27%, to total revenue in the previous and year-ago quarters, respectively.

International Market Revenue Projections

The current fiscal quarter's total revenue for Garmin, as projected by Wall Street analysts, is expected to reach $1.46 billion, reflecting an increase of 5.8% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: EMEA is anticipated to contribute 32.3% or $472.61 million and APAC 15.7% or $229.23 million.

For the full year, the company is expected to generate $7 billion in total revenue, up 11.2% from the previous year. Revenues from EMEA and APAC are expected to constitute 31.4% ($2.2 billion) and 14.5% ($1.02 billion) of the total, respectively.

The Bottom Line

Relying on international markets for revenues, Garmin faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

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.

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.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Garmin, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of Garmin's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 4.9%, against a downturn of 0.5% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Garmin among its entities, has depreciated by 3.2%. Over the past three months, the company's shares have seen an increase of 5.7% versus the S&P 500's 1.4% increase. The sector overall has witnessed an increase of 1.3% over the same period.