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Don't Overlook NETGEAR (NTGR) International Revenue Trends While Assessing the Stock

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Have you looked into how NETGEAR, Inc. (NTGR - Free Report) performed internationally during the quarter ending June 2025? Considering the widespread global presence of this company, 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.

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 recent quarter saw the company's total revenue reaching $170.53 million, marking an improvement of 18.5% from the prior-year quarter. Next, we'll examine the breakdown of NTGR's revenue from abroad to comprehend the significance of its international presence.

A Look into NTGR's International Revenue Streams

APAC accounted for 11.7% of the company's total revenue during the quarter, translating to $19.88 million. Revenues from this region represented a surprise of -8.19%, with Wall Street analysts collectively expecting $21.65 million. When compared to the preceding quarter and the same quarter in the previous year, APAC contributed $22.17 million (13.7%) and $21.04 million (14.6%) to the total revenue, respectively.

During the quarter, EMEA contributed $34.38 million in revenue, making up 20.2% of the total revenue. When compared to the consensus estimate of $30.97 million, this meant a surprise of +11%. Looking back, EMEA contributed $32.13 million, or 19.8%, in the previous quarter, and $27.36 million, or 19%, in the same quarter of the previous year.

Prospective Revenues in International Markets

Wall Street analysts expect NETGEAR to report a total revenue of $172.43 million in the current fiscal quarter, which suggests a decline of 5.7% from the prior-year quarter. Revenue shares from APAC and EMEA are predicted to be 14.5%, and 21.2%, corresponding to amounts of $24.98 million, and $36.62 million, respectively.

For the entire year, the company's total revenue is forecasted to be $691.1 million, which is an improvement of 2.6% from the previous year. The revenue contributions from different regions are expected as follows: APAC will contribute 13.3% ($91.95 million), and EMEA 19.3% ($133.66 million) to the total revenue.

Wrapping Up

NETGEAR's 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 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.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

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.

Currently, NETGEAR 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 >>>> .

Reviewing NETGEAR, Inc.'s Recent Stock Price Trends

The stock has witnessed a decline of 23.5% over the past month versus the Zacks S&P 500 composite's an increase of 0.6%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered an increase of 3.4%. Over the past three months, the company's shares saw a decrease of 22.9%, while the S&P 500 increased by 11.7%. In comparison, the sector experienced an increase of 20.2% during this timeframe.


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