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International Markets and Insmed (INSM): A Deep Dive for Investors

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Have you assessed how the international operations of Insmed (INSM - Free Report) performed in the quarter ended December 2024? For this biopharmaceutical developing inhaled treatments for patients battling rare lung diseases, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

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 international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

While analyzing INSM'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.

For the quarter, the company's total revenue amounted to $104.44 million, experiencing an increase of 24.8% year over year. Next, we'll explore the breakdown of INSM's international revenue to understand the importance of its overseas business operations.

A Dive into INSM's International Revenue Trends

Japan accounted for 29.39% of the company's total revenue during the quarter, translating to $30.7 million. Revenues from this region represented a surprise of -0.07%, with Wall Street analysts collectively expecting $30.72 million. When compared to the preceding quarter and the same quarter in the previous year, Japan contributed $20.98 million (22.46%) and $20.95 million (25.03%) to the total revenue, respectively.

Europe and rest of world generated $5.9 million in revenues for the company in the last quarter, constituting 5.65% of the total. This represented a surprise of -0.51% compared to the $5.93 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe and rest of world accounted for $5.57 million (5.97%), and in the year-ago quarter, it contributed $4.48 million (5.36%) to the total revenue.

Projected Revenues in Foreign Markets

Wall Street analysts expect Insmed to report a total revenue of $94.72 million in the current fiscal quarter, which suggests an increase of 25.5% from the prior-year quarter. Revenue shares from Japan and Europe and rest of world are predicted to be 28% and 5.9%, corresponding to amounts of $26.48 million and $5.59 million, respectively.

For the full year, a total revenue of $467.34 million is expected for the company, reflecting an increase of 28.5% from the year before. The revenues from Japan and Europe and rest of world are expected to make up 25% and 5.2% of this total, corresponding to $116.82 million and $24.1 million respectively.

In Conclusion

Relying on international markets for revenues, Insmed 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.

Insmed, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Insmed's Recent Stock Price Performance

Over the past month, the stock has seen an increase of 3.3% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.5%. The Zacks Medical sector, Insmed's industry group, has ascended 2.7% over the identical span. In the past three months, there's been an increase of 7.9% in the company's stock price, against a rise of 1.4% in the S&P 500 index. The broader sector has declined by 0.1% during this interval.

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