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Understanding Garmin (GRMN) Reliance on International Revenue
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Have you evaluated the performance of Garmin's (GRMN - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of personal navigation devices, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of GRMN'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.
For the quarter, the company's total revenue amounted to $1.51 billion, experiencing an increase of 14.1% year over year. Next, we'll explore the breakdown of GRMN's international revenue to understand the importance of its overseas business operations.
Decoding GRMN's International Revenue Trends
EMEA generated $542.02 million in revenues for the company in the last quarter, constituting 36.0% of the total. This represented a surprise of +10.13% compared to the $492.16 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $463.38 million (33.5%), and in the year-ago quarter, it contributed $457.55 million (34.6%) to the total revenue.
During the quarter, APAC contributed $224.08 million in revenue, making up 14.9% of the total revenue. When compared to the consensus estimate of $215.68 million, this meant a surprise of +3.89%. Looking back, APAC contributed $202.15 million, or 14.6%, in the previous quarter, and $221.4 million, or 16.8%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Garmin will post revenues of $1.43 billion for the ongoing fiscal quarter, an increase of 11.7% from the year-ago quarter. The expected contributions from EMEA and APAC to this revenue are 34.6% and 15.9%, translating into $492.73 million and $226.29 million, respectively.
For the full year, the company is expected to generate $5.9 billion in total revenue, up 12.8% from the previous year. Revenues from EMEA and APAC are expected to constitute 33.9% ($2 billion) and 15.2% ($897.19 million) of the total, respectively.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Garmin. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
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.
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.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
The stock has witnessed an increase of 4.1% 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 Garmin belongs, has registered a decrease of 8.7%. Over the past three months, the company's shares saw a decrease of 0.2%, 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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Understanding Garmin (GRMN) Reliance on International Revenue
Have you evaluated the performance of Garmin's (GRMN - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of personal navigation devices, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of GRMN'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.
For the quarter, the company's total revenue amounted to $1.51 billion, experiencing an increase of 14.1% year over year. Next, we'll explore the breakdown of GRMN's international revenue to understand the importance of its overseas business operations.
Decoding GRMN's International Revenue Trends
EMEA generated $542.02 million in revenues for the company in the last quarter, constituting 36.0% of the total. This represented a surprise of +10.13% compared to the $492.16 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $463.38 million (33.5%), and in the year-ago quarter, it contributed $457.55 million (34.6%) to the total revenue.
During the quarter, APAC contributed $224.08 million in revenue, making up 14.9% of the total revenue. When compared to the consensus estimate of $215.68 million, this meant a surprise of +3.89%. Looking back, APAC contributed $202.15 million, or 14.6%, in the previous quarter, and $221.4 million, or 16.8%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
It is projected by analysts on Wall Street that Garmin will post revenues of $1.43 billion for the ongoing fiscal quarter, an increase of 11.7% from the year-ago quarter. The expected contributions from EMEA and APAC to this revenue are 34.6% and 15.9%, translating into $492.73 million and $226.29 million, respectively.For the full year, the company is expected to generate $5.9 billion in total revenue, up 12.8% from the previous year. Revenues from EMEA and APAC are expected to constitute 33.9% ($2 billion) and 15.2% ($897.19 million) of the total, respectively.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Garmin. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.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.
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.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Garmin 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 >>>>
Exploring Recent Trends in Garmin's Stock Price
The stock has witnessed an increase of 4.1% 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 Garmin belongs, has registered a decrease of 8.7%. Over the past three months, the company's shares saw a decrease of 0.2%, while the S&P 500 increased by 5.9%. In comparison, the sector experienced an increase of 6.3% during this timeframe.