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Don't Overlook Watts Water (WTS) International Revenue Trends While Assessing the Stock
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Did you analyze how Watts Water (WTS - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this maker of valves for plumbing, heating and water needs, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing WTS' performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $597.3 million, marking an increase of 12.1% from the year-ago quarter. We will next turn our attention to dissecting WTS' international revenue to get a clearer picture of how significant its operations are outside its main base.
Trends in WTS' Revenue from International Markets
Of the total revenue, $114.1 million came from Europe during the last fiscal quarter, accounting for 19.1%. This represented a surprise of -6.63% as analysts had expected the region to contribute $122.2 million to the total revenue. In comparison, the region contributed $123.3 million, or 21.6%, and $135.6 million, or 25.5%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, APMEA contributed $35.1 million in revenue, making up 5.9% of the total revenue. When compared to the consensus estimate of $31.07 million, this meant a surprise of +12.98%. Looking back, APMEA contributed $28.8 million, or 5%, in the previous quarter, and $30.3 million, or 5.7%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Watts Water to report a total revenue of $556 million in the current fiscal quarter, which suggests an increase of 10.3% from the prior-year quarter. Revenue shares from Europe and APMEA are predicted to be 20.4% and 6.2%, corresponding to amounts of $113.33 million and $34.53 million, respectively.
Analysts expect the company to report a total annual revenue of $2.25 billion for the full year, marking an increase of 9.3% compared to last year. The expected revenue contributions from Europe and APMEA are projected to be 21.3% ($478.77 million) and 5.7% ($129.17 million) of the total revenue, in that order.
Final Thoughts
The dependency of Watts Water 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.
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.
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Don't Overlook Watts Water (WTS) International Revenue Trends While Assessing the Stock
Did you analyze how Watts Water (WTS - Free Report) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this maker of valves for plumbing, heating and water needs, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
While analyzing WTS' performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $597.3 million, marking an increase of 12.1% from the year-ago quarter. We will next turn our attention to dissecting WTS' international revenue to get a clearer picture of how significant its operations are outside its main base.
Trends in WTS' Revenue from International Markets
Of the total revenue, $114.1 million came from Europe during the last fiscal quarter, accounting for 19.1%. This represented a surprise of -6.63% as analysts had expected the region to contribute $122.2 million to the total revenue. In comparison, the region contributed $123.3 million, or 21.6%, and $135.6 million, or 25.5%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, APMEA contributed $35.1 million in revenue, making up 5.9% of the total revenue. When compared to the consensus estimate of $31.07 million, this meant a surprise of +12.98%. Looking back, APMEA contributed $28.8 million, or 5%, in the previous quarter, and $30.3 million, or 5.7%, in the same quarter of the previous year.
Anticipated Revenues in Overseas Markets
Wall Street analysts expect Watts Water to report a total revenue of $556 million in the current fiscal quarter, which suggests an increase of 10.3% from the prior-year quarter. Revenue shares from Europe and APMEA are predicted to be 20.4% and 6.2%, corresponding to amounts of $113.33 million and $34.53 million, respectively.Analysts expect the company to report a total annual revenue of $2.25 billion for the full year, marking an increase of 9.3% compared to last year. The expected revenue contributions from Europe and APMEA are projected to be 21.3% ($478.77 million) and 5.7% ($129.17 million) of the total revenue, in that order.
Final Thoughts
The dependency of Watts Water 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.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.
At present, Watts Water holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Watts Water's Recent Stock Market Performance