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Understanding Berry Global (BERY) Reliance on International Revenue
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Have you evaluated the performance of Berry Global's (BERY - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this packaging company, 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.
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 BERY'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 stood at $3.16 billion, declining 2.1% year over year. Now, let's delve into BERY's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Unveiling Trends in BERY's International Revenues
Rest of world generated $295 million in revenues for the company in the last quarter, constituting 9.3% of the total. This represented a surprise of -2.75% compared to the $303.33 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of world accounted for $279 million (9.1%), and in the year-ago quarter, it contributed $297 million (9.2%) to the total revenue.
During the quarter, Europe contributed $1.1 billion in revenue, making up 34.9% of the total revenue. When compared to the consensus estimate of $1.15 billion, this meant a surprise of -4.32%. Looking back, Europe contributed $1.13 billion, or 36.6%, in the previous quarter, and $1.18 billion, or 36.7%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Berry Global will report a total revenue of $3.15 billion, which reflects an increase of 2% from the same quarter in the previous year. The revenue contributions are expected to be 9.4% from Rest of world ($296 million) and 35.3% from Europe ($1.11 billion).
Analysts expect the company to report a total annual revenue of $12.28 billion for the full year, marking a decrease of 3% compared to last year. The expected revenue contributions from Rest of world and Europe are projected to be 9.5% ($1.16 billion) and 35.8% ($4.4 billion) of the total revenue, in that order.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Berry Global. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
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, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
A Look at Berry Global's Recent Stock Price Performance
Over the past month, the stock has gained 5.9% versus the Zacks S&P 500 composite's 6.7% decrease. The Zacks Industrial Products sector, of which Berry Global is a part, has declined 1.3% over the same period. The company's shares have increased 5.4% over the past three months compared to the S&P 500's 1.6% increase. Over the same period, the sector has declined 5.6%.
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Understanding Berry Global (BERY) Reliance on International Revenue
Have you evaluated the performance of Berry Global's (BERY - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this packaging company, 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.
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 BERY'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 stood at $3.16 billion, declining 2.1% year over year. Now, let's delve into BERY's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Unveiling Trends in BERY's International Revenues
Rest of world generated $295 million in revenues for the company in the last quarter, constituting 9.3% of the total. This represented a surprise of -2.75% compared to the $303.33 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of world accounted for $279 million (9.1%), and in the year-ago quarter, it contributed $297 million (9.2%) to the total revenue.
During the quarter, Europe contributed $1.1 billion in revenue, making up 34.9% of the total revenue. When compared to the consensus estimate of $1.15 billion, this meant a surprise of -4.32%. Looking back, Europe contributed $1.13 billion, or 36.6%, in the previous quarter, and $1.18 billion, or 36.7%, in the same quarter of the previous year.
Revenue Forecasts for the International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Berry Global will report a total revenue of $3.15 billion, which reflects an increase of 2% from the same quarter in the previous year. The revenue contributions are expected to be 9.4% from Rest of world ($296 million) and 35.3% from Europe ($1.11 billion).Analysts expect the company to report a total annual revenue of $12.28 billion for the full year, marking a decrease of 3% compared to last year. The expected revenue contributions from Rest of world and Europe are projected to be 9.5% ($1.16 billion) and 35.8% ($4.4 billion) of the total revenue, in that order.
Closing Remarks
Relying on global markets for revenues presents both prospects and challenges for Berry Global. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.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, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Currently, Berry Global 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 Berry Global's Recent Stock Price Performance
Over the past month, the stock has gained 5.9% versus the Zacks S&P 500 composite's 6.7% decrease. The Zacks Industrial Products sector, of which Berry Global is a part, has declined 1.3% over the same period. The company's shares have increased 5.4% over the past three months compared to the S&P 500's 1.6% increase. Over the same period, the sector has declined 5.6%.