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Don't Overlook The Manitowoc Company (MTW) International Revenue Trends While Assessing the Stock

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Have you looked into how The Manitowoc Company, Inc. (MTW - Free Report) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

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.

While analyzing MTW's 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 recent quarter saw the company's total revenue reaching $524.8 million, marking an improvement of 0.8% from the prior-year quarter. Next, we'll examine the breakdown of MTW's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in MTW's International Revenues

During the quarter, MEAP contributed $110.9 million in revenue, making up 21.13% of the total revenue. When compared to the consensus estimate of $76.43 million, this meant a surprise of +45.11%. Looking back, MEAP contributed $89.2 million, or 15.87%, in the previous quarter, and $93.5 million, or 17.95%, in the same quarter of the previous year.

EURAF generated $126.8 million in revenues for the company in the last quarter, constituting 24.16% of the total. This represented a surprise of -8.38% compared to the $138.39 million projected by Wall Street analysts. Comparatively, in the previous quarter, EURAF accounted for $176.2 million (31.35%), and in the year-ago quarter, it contributed $150.6 million (28.91%) to the total revenue.

Revenue Projections for Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that The Manitowoc Company will report a total revenue of $595.23 million, which reflects a decline of 0.1% from the same quarter in the previous year. The revenue contributions are expected to be 25.4% from MEAP ($-150.89 million) and 43.5% from EURAF ($258.82 million).

For the entire year, the company's total revenue is forecasted to be $2.17 billion, which is a reduction of 2.5% from the previous year. The revenue contributions from different regions are expected as follows: MEAP will contribute 16.6% ($360.17 million) and EURAF 28.9% ($628.3 million) to the total revenue.

In Conclusion

Relying on international markets for revenues, The Manitowoc Company faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

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.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At present, The Manitowoc Company 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 >>>>

The Manitowoc Company's Recent Stock Market Performance

Over the past month, the stock has lost 5.4% versus the Zacks S&P 500 composite's 0.4% increase. The Zacks Industrial Products sector, of which The Manitowoc Company is a part, has declined 0.7% over the same period. The company's shares have declined 3.5% over the past three months compared to the S&P 500's 5.5% increase. Over the same period, the sector has risen 5.5%.

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