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Gen Digital (GEN) Reliance on International Sales: What Investors Need to Know
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Have you looked into how Gen Digital (GEN - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this security software maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.
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.
In our recent assessment of GEN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $965 million, increasing 2% year over year. Now, let's delve into GEN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at GEN's Revenue Streams Abroad
During the quarter, EMEA contributed $233 million in revenue, making up 24.2% of the total revenue. When compared to the consensus estimate of $231.85 million, this meant a surprise of +0.5%. Looking back, EMEA contributed $234 million, or 24.2%, in the previous quarter, and $225 million, or 23.8%, in the same quarter of the previous year.
APJ generated $96 million in revenues for the company in the last quarter, constituting 10.0% of the total. This represented a surprise of -4.55% compared to the $100.58 million projected by Wall Street analysts. Comparatively, in the previous quarter, APJ accounted for $97 million (10%), and in the year-ago quarter, it contributed $99 million (10.5%) to the total revenue.
Prospective Revenues in International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Gen Digital will report a total revenue of $967.68 million, which reflects an increase of 1.3% from the same quarter in the previous year. The revenue contributions are expected to be 24.1% from EMEA ($233.32 million) and 10.3% from APJ ($100.06 million).
For the full year, a total revenue of $3.9 billion is expected for the company, reflecting an increase of 2.2% from the year before. The revenues from EMEA and APJ are expected to make up 24.2% and 10.4% of this total, corresponding to $943.1 million and $404.32 million respectively.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for Gen Digital. 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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
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.
Image: Bigstock
Gen Digital (GEN) Reliance on International Sales: What Investors Need to Know
Have you looked into how Gen Digital (GEN - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this security software maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.
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.
In our recent assessment of GEN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $965 million, increasing 2% year over year. Now, let's delve into GEN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at GEN's Revenue Streams Abroad
During the quarter, EMEA contributed $233 million in revenue, making up 24.2% of the total revenue. When compared to the consensus estimate of $231.85 million, this meant a surprise of +0.5%. Looking back, EMEA contributed $234 million, or 24.2%, in the previous quarter, and $225 million, or 23.8%, in the same quarter of the previous year.
APJ generated $96 million in revenues for the company in the last quarter, constituting 10.0% of the total. This represented a surprise of -4.55% compared to the $100.58 million projected by Wall Street analysts. Comparatively, in the previous quarter, APJ accounted for $97 million (10%), and in the year-ago quarter, it contributed $99 million (10.5%) to the total revenue.
Prospective Revenues in International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Gen Digital will report a total revenue of $967.68 million, which reflects an increase of 1.3% from the same quarter in the previous year. The revenue contributions are expected to be 24.1% from EMEA ($233.32 million) and 10.3% from APJ ($100.06 million).For the full year, a total revenue of $3.9 billion is expected for the company, reflecting an increase of 2.2% from the year before. The revenues from EMEA and APJ are expected to make up 24.2% and 10.4% of this total, corresponding to $943.1 million and $404.32 million respectively.
Final Thoughts
Relying on global markets for revenues presents both prospects and challenges for Gen Digital. 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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
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, Gen Digital 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 >>>>
A Review of Gen Digital's Recent Stock Market Performance