Have you looked into how Universal Display Corp. (OLED Quick QuoteOLED - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this organic light-emitting diode technology company, 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 OLED'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 amounted to $158.51 million, showing rise of 8.2%. We will now explore the breakdown of OLED's overseas revenue to assess the impact of its international operations.

Trends in OLED's Revenue from International Markets

Of the total revenue, $0.27 million came from Other Countries during the last fiscal quarter, accounting for 0.2%. This represented a surprise of -70% as analysts had expected the region to contribute $0.91 million to the total revenue. In comparison, the region contributed $1.67 million, or 1%, and $1.98 million, or 1.4%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, South Korea contributed $108.19 million in revenue, making up 68.3% of the total revenue. When compared to the consensus estimate of $93.12 million, this meant a surprise of +16.19%. Looking back, South Korea contributed $102.4 million, or 62%, in the previous quarter, and $82.03 million, or 56%, in the same quarter of the previous year.

China generated $45.24 million in revenues for the company in the last quarter, constituting 28.5% of the total. This represented a surprise of -21.74% compared to the $57.8 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $57.47 million (34.8%), and in the year-ago quarter, it contributed $57.52 million (39.2%) to the total revenue.

Japan accounted for 0.8% of the company's total revenue during the quarter, translating to $1.26 million. Revenues from this region represented a surprise of -27.4%, with Wall Street analysts collectively expecting $1.73 million. When compared to the preceding quarter and the same quarter in the previous year, Japan contributed $1.25 million (0.8%) and $1.51 million (1%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

The current fiscal quarter's total revenue for Universal Display, as projected by Wall Street analysts, is expected to reach $165.54 million, reflecting an increase of 17.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Other Countries is anticipated to contribute 0.6% or $1.06 million, South Korea 58.6% or $97 million, China 37.7% or $62.34 million and Japan 1% or $1.65 million.

For the full year, the company is projected to achieve a total revenue of $658.2 million, which signifies a rise of 14.2% from the last year. The share of this revenue from various regions is expected to be: Other Countries at 0.7% ($4.67 million), South Korea at 57.1% ($375.73 million), China at 39.2% ($257.74 million) and Japan at 1.1% ($7.33 million).

Concluding Remarks

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

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

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, Universal Display 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 >>>>

A Look at Universal Display's Recent Stock Price Performance

Over the past month, the stock has lost 21.1% versus the Zacks S&P 500 composite's 2.9% decrease. The Zacks Computer and Technology sector, of which Universal Display is a part, has declined 8.7% over the same period. The company's shares have increased 0.7% over the past three months compared to the S&P 500's 5.9% increase. Over the same period, the sector has risen 6.3%.