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Don't Overlook Steris (STE) International Revenue Trends While Assessing the Stock
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Have you evaluated the performance of Steris' (STE - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this medical products maker, analyzing the patterns in international revenues is crucial for understanding its financial strength 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.
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.
Our review of STE'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.
The company's total revenue for the quarter stood at $1.28 billion, declining 0.4% year over year. Now, let's delve into STE's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at STE's Revenue Streams Abroad
Of the total revenue, $22.19 million came from Ireland during the last fiscal quarter, accounting for 1.7%. This represented a surprise of -2.7% as analysts had expected the region to contribute $22.81 million to the total revenue. In comparison, the region contributed $22.66 million, or 1.6%, and $20.09 million, or 1.6%, to total revenue in the previous and year-ago quarters, respectively.
Other Foreign Revenues accounted for 24.3% of the company's total revenue during the quarter, translating to $310.42 million. Revenues from this region represented a surprise of -12.93%, with Wall Street analysts collectively expecting $356.5 million. When compared to the preceding quarter and the same quarter in the previous year, Other Foreign Revenues contributed $360.69 million (25.4%) and $333.92 million (26%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that Steris will post revenues of $1.34 billion for the ongoing fiscal quarter, a decline of 0.5% from the year-ago quarter. The expected contributions from Ireland and Other Foreign Revenues to this revenue are 2.4% and 27.3%, translating into $32.11 million and $364.31 million, respectively.
For the full year, the company is projected to achieve a total revenue of $5.48 billion, which signifies a rise of 0.6% from the last year. The share of this revenue from various regions is expected to be: Ireland at 2.1% ($112.54 million) and Other Foreign Revenues at 27.8% ($1.52 billion).
The Bottom Line
Steris' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
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, 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.
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.
Image: Bigstock
Don't Overlook Steris (STE) International Revenue Trends While Assessing the Stock
Have you evaluated the performance of Steris' (STE - Free Report) international operations for the quarter ending June 2024? Given the extensive global presence of this medical products maker, analyzing the patterns in international revenues is crucial for understanding its financial strength 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.
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.
Our review of STE'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.
The company's total revenue for the quarter stood at $1.28 billion, declining 0.4% year over year. Now, let's delve into STE's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at STE's Revenue Streams Abroad
Of the total revenue, $22.19 million came from Ireland during the last fiscal quarter, accounting for 1.7%. This represented a surprise of -2.7% as analysts had expected the region to contribute $22.81 million to the total revenue. In comparison, the region contributed $22.66 million, or 1.6%, and $20.09 million, or 1.6%, to total revenue in the previous and year-ago quarters, respectively.
Other Foreign Revenues accounted for 24.3% of the company's total revenue during the quarter, translating to $310.42 million. Revenues from this region represented a surprise of -12.93%, with Wall Street analysts collectively expecting $356.5 million. When compared to the preceding quarter and the same quarter in the previous year, Other Foreign Revenues contributed $360.69 million (25.4%) and $333.92 million (26%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that Steris will post revenues of $1.34 billion for the ongoing fiscal quarter, a decline of 0.5% from the year-ago quarter. The expected contributions from Ireland and Other Foreign Revenues to this revenue are 2.4% and 27.3%, translating into $32.11 million and $364.31 million, respectively.For the full year, the company is projected to achieve a total revenue of $5.48 billion, which signifies a rise of 0.6% from the last year. The share of this revenue from various regions is expected to be: Ireland at 2.1% ($112.54 million) and Other Foreign Revenues at 27.8% ($1.52 billion).
The Bottom Line
Steris' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.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, 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.
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.
At the moment, Steris has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Steris' Recent Stock Price Performance