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International Markets and Ametek (AME): A Deep Dive for Investors
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Have you assessed how the international operations of Ametek (AME - Free Report) performed in the quarter ended March 2024? For this maker of electronic instruments and electromechanical devices, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
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 AME'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 $1.74 billion, marking an improvement of 8.7% from the prior-year quarter. Next, we'll examine the breakdown of AME's revenue from abroad to comprehend the significance of its international presence.
Trends in AME's Revenue from International Markets
Asia generated $348.24 million in revenues for the company in the last quarter, constituting 20.1% of the total. This represented a surprise of -7.33% compared to the $375.78 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $380.32 million (22%), and in the year-ago quarter, it contributed $334.8 million (21%) to the total revenue.
Of the total revenue, $257.23 million came from European Union countries during the last fiscal quarter, accounting for 14.8%. This represented a surprise of -9.01% as analysts had expected the region to contribute $282.69 million to the total revenue. In comparison, the region contributed $235.87 million, or 13.6%, and $252.47 million, or 15.8%, to total revenue in the previous and year-ago quarters, respectively.
Other foreign countries accounted for 9.4% of the company's total revenue during the quarter, translating to $163.05 million. Revenues from this region represented a surprise of +3.97%, with Wall Street analysts collectively expecting $156.82 million. When compared to the preceding quarter and the same quarter in the previous year, Other foreign countries contributed $155.79 million (9%) and $141.74 million (8.9%) to the total revenue, respectively.
During the quarter, United Kingdom contributed $54.9 million in revenue, making up 3.2% of the total revenue. When compared to the consensus estimate of $69.48 million, this meant a surprise of -20.99%. Looking back, United Kingdom contributed $50.16 million, or 2.9%, in the previous quarter, and $59.1 million, or 3.7%, in the same quarter of the previous year.
International Market Revenue Projections
It is projected by analysts on Wall Street that Ametek will post revenues of $1.76 billion for the ongoing fiscal quarter, an increase of 6.7% from the year-ago quarter. The expected contributions from Asia, European Union countries, Other foreign countries and United Kingdom to this revenue are 21.5%, 15.4%, 8.8% and 3.4%, translating into $378.16 million, $271.13 million, $154.27 million and $60.4 million, respectively.
For the full year, a total revenue of $7.36 billion is expected for the company, reflecting an increase of 11.6% from the year before. The revenues from Asia, European Union countries, Other foreign countries and United Kingdom are expected to make up 20.8%, 15.2%, 8.5% and 3.6% of this total, corresponding to $1.53 billion, $1.12 billion, $625.99 million and $261.21 million respectively.
Key Takeaways
The dependency of Ametek 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 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.
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.
The stock has declined by 7.1% over the past month compared to the 0.4% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Ametek, has increased 0.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 0.2% relative to the S&P 500's 4.9% increase. Throughout this period, the sector overall has witnessed a 5.3% increase.
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International Markets and Ametek (AME): A Deep Dive for Investors
Have you assessed how the international operations of Ametek (AME - Free Report) performed in the quarter ended March 2024? For this maker of electronic instruments and electromechanical devices, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
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 AME'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 $1.74 billion, marking an improvement of 8.7% from the prior-year quarter. Next, we'll examine the breakdown of AME's revenue from abroad to comprehend the significance of its international presence.
Trends in AME's Revenue from International Markets
Asia generated $348.24 million in revenues for the company in the last quarter, constituting 20.1% of the total. This represented a surprise of -7.33% compared to the $375.78 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $380.32 million (22%), and in the year-ago quarter, it contributed $334.8 million (21%) to the total revenue.
Of the total revenue, $257.23 million came from European Union countries during the last fiscal quarter, accounting for 14.8%. This represented a surprise of -9.01% as analysts had expected the region to contribute $282.69 million to the total revenue. In comparison, the region contributed $235.87 million, or 13.6%, and $252.47 million, or 15.8%, to total revenue in the previous and year-ago quarters, respectively.
Other foreign countries accounted for 9.4% of the company's total revenue during the quarter, translating to $163.05 million. Revenues from this region represented a surprise of +3.97%, with Wall Street analysts collectively expecting $156.82 million. When compared to the preceding quarter and the same quarter in the previous year, Other foreign countries contributed $155.79 million (9%) and $141.74 million (8.9%) to the total revenue, respectively.
During the quarter, United Kingdom contributed $54.9 million in revenue, making up 3.2% of the total revenue. When compared to the consensus estimate of $69.48 million, this meant a surprise of -20.99%. Looking back, United Kingdom contributed $50.16 million, or 2.9%, in the previous quarter, and $59.1 million, or 3.7%, in the same quarter of the previous year.
International Market Revenue Projections
It is projected by analysts on Wall Street that Ametek will post revenues of $1.76 billion for the ongoing fiscal quarter, an increase of 6.7% from the year-ago quarter. The expected contributions from Asia, European Union countries, Other foreign countries and United Kingdom to this revenue are 21.5%, 15.4%, 8.8% and 3.4%, translating into $378.16 million, $271.13 million, $154.27 million and $60.4 million, respectively.
For the full year, a total revenue of $7.36 billion is expected for the company, reflecting an increase of 11.6% from the year before. The revenues from Asia, European Union countries, Other foreign countries and United Kingdom are expected to make up 20.8%, 15.2%, 8.5% and 3.6% of this total, corresponding to $1.53 billion, $1.12 billion, $625.99 million and $261.21 million respectively.
Key Takeaways
The dependency of Ametek 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 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.
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.
Ametek 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 >>>>
Ametek's Recent Stock Market Performance
The stock has declined by 7.1% over the past month compared to the 0.4% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Ametek, has increased 0.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 0.2% relative to the S&P 500's 4.9% increase. Throughout this period, the sector overall has witnessed a 5.3% increase.