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Investing in NETGEAR (NTGR)? Don't Miss Assessing Its International Revenue Trends
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Have you evaluated the performance of NETGEAR, Inc.'s (NTGR - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of NTGR's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $143.9 million, experiencing a decline of 17% year over year. Next, we'll explore the breakdown of NTGR's international revenue to understand the importance of its overseas business operations.
Trends in NTGR's Revenue from International Markets
APAC generated $21.04 million in revenues for the company in the last quarter, constituting 14.6% of the total. This represented a surprise of +25.55% compared to the $16.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $23.47 million (14.3%), and in the year-ago quarter, it contributed $20.64 million (11.9%) to the total revenue.
During the quarter, EMEA contributed $27.36 million in revenue, making up 19.0% of the total revenue. When compared to the consensus estimate of $25.8 million, this meant a surprise of +6.03%. Looking back, EMEA contributed $31.19 million, or 19%, in the previous quarter, and $36.16 million, or 20.9%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
Wall Street analysts expect NETGEAR to report a total revenue of $166.79 million in the current fiscal quarter, which suggests a decline of 15.7% from the prior-year quarter. Revenue shares from APAC and EMEA are predicted to be 12.8% and 19.1%, corresponding to amounts of $21.36 million and $31.84 million, respectively.
For the full year, a total revenue of $641.34 million is expected for the company, reflecting a decline of 13.4% from the year before. The revenues from APAC and EMEA are expected to make up 13.2% and 19.1% of this total, corresponding to $84.62 million and $122.24 million respectively.
In Conclusion
Relying on international markets for revenues, NETGEAR faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these 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.
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.
A Look at NETGEAR's Recent Stock Price Performance
The stock has witnessed an increase of 4.6% over the past month versus the Zacks S&P 500 composite's a decrease of 2.9%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered a decrease of 8.7%. Over the past three months, the company's shares saw an increase of 26.7%, while the S&P 500 increased by 5.9%. In comparison, the sector experienced an increase of 6.3% during this timeframe.
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Investing in NETGEAR (NTGR)? Don't Miss Assessing Its International Revenue Trends
Have you evaluated the performance of NETGEAR, Inc.'s (NTGR - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of NTGR's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
For the quarter, the company's total revenue amounted to $143.9 million, experiencing a decline of 17% year over year. Next, we'll explore the breakdown of NTGR's international revenue to understand the importance of its overseas business operations.
Trends in NTGR's Revenue from International Markets
APAC generated $21.04 million in revenues for the company in the last quarter, constituting 14.6% of the total. This represented a surprise of +25.55% compared to the $16.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $23.47 million (14.3%), and in the year-ago quarter, it contributed $20.64 million (11.9%) to the total revenue.
During the quarter, EMEA contributed $27.36 million in revenue, making up 19.0% of the total revenue. When compared to the consensus estimate of $25.8 million, this meant a surprise of +6.03%. Looking back, EMEA contributed $31.19 million, or 19%, in the previous quarter, and $36.16 million, or 20.9%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
Wall Street analysts expect NETGEAR to report a total revenue of $166.79 million in the current fiscal quarter, which suggests a decline of 15.7% from the prior-year quarter. Revenue shares from APAC and EMEA are predicted to be 12.8% and 19.1%, corresponding to amounts of $21.36 million and $31.84 million, respectively.For the full year, a total revenue of $641.34 million is expected for the company, reflecting a decline of 13.4% from the year before. The revenues from APAC and EMEA are expected to make up 13.2% and 19.1% of this total, corresponding to $84.62 million and $122.24 million respectively.
In Conclusion
Relying on international markets for revenues, NETGEAR faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these 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.
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, 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 >>>>
A Look at NETGEAR's Recent Stock Price Performance
The stock has witnessed an increase of 4.6% over the past month versus the Zacks S&P 500 composite's a decrease of 2.9%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered a decrease of 8.7%. Over the past three months, the company's shares saw an increase of 26.7%, while the S&P 500 increased by 5.9%. In comparison, the sector experienced an increase of 6.3% during this timeframe.