Have you evaluated the performance of Progress Software's (PRGS Quick QuotePRGS - Free Report) international operations for the quarter ending August 2024? Given the extensive global presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

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.

While delving into PRGS' performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

For the quarter, the company's total revenue amounted to $178.69 million, experiencing an increase of 1.7% year over year. Next, we'll explore the breakdown of PRGS' international revenue to understand the importance of its overseas business operations.

Exploring PRGS' International Revenue Patterns

During the quarter, Latin America contributed $5.36 million in revenue, making up 3.0% of the total revenue. When compared to the consensus estimate of $4.63 million, this meant a surprise of +15.83%. Looking back, Latin America contributed $4.6 million, or 2.6%, in the previous quarter, and $6.32 million, or 3.6%, in the same quarter of the previous year.

Of the total revenue, $57.03 million came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 31.9%. This represented a surprise of -1.48% as analysts had expected the region to contribute $57.89 million to the total revenue. In comparison, the region contributed $57.54 million, or 32.9%, and $56.78 million, or 32.3%, to total revenue in the previous and year-ago quarters, respectively.

Asia Pacific accounted for 6.7% of the company's total revenue during the quarter, translating to $11.92 million. Revenues from this region represented a surprise of +18.05%, with Wall Street analysts collectively expecting $10.1 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $10.04 million (5.7%) and $9.97 million (5.7%) to the total revenue, respectively.

International Revenue Predictions

The current fiscal quarter's total revenue for Progress Software, as projected by Wall Street analysts, is expected to reach $211.89 million, reflecting an increase of 19.4% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Latin America is anticipated to contribute 2.4% or $5.11 million, Europe, Middle East and Africa 30.2% or $63.88 million and Asia Pacific 5.3% or $11.15 million.

For the entire year, the company's total revenue is forecasted to be $750.35 million, which is an improvement of 7.5% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 2.5% ($19 million), Europe, Middle East and Africa 32.3% ($242.39 million) and Asia Pacific 5.5% ($40.93 million) to the total revenue.

Concluding Remarks

Progress Software's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

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.

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.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Progress Software currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform 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 Progress Software's Stock Price

The stock has increased by 14% over the past month compared to the 2.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Progress Software, has increased 1.8% during this time frame. Over the past three months, the company's shares have experienced a gain of 20.4% relative to the S&P 500's 4.9% increase. Throughout this period, the sector overall has witnessed a 1% decrease.