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Don't Overlook Thermo Fisher (TMO) International Revenue Trends While Assessing the Stock
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Have you evaluated the performance of Thermo Fisher Scientific's (TMO - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this maker of scientific instrument and laboratory supplies, analyzing the patterns in international revenues is crucial for understanding its financial resilience 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 TMO's 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.
The company's total revenue for the quarter stood at $10.35 billion, declining 3.4% year over year. Now, let's delve into TMO's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Exploring TMO's International Revenue Patterns
During the quarter, Europe contributed $2.62 billion in revenue, making up 25.3% of the total revenue. When compared to the consensus estimate of $2.51 billion, this meant a surprise of +4.33%. Looking back, Europe contributed $2.84 billion, or 26.1%, in the previous quarter, and $2.6 billion, or 24.3%, in the same quarter of the previous year.
Of the total revenue, $346 million came from Other regions during the last fiscal quarter, accounting for 3.3%. This represented a surprise of -1.34% as analysts had expected the region to contribute $350.7 million to the total revenue. In comparison, the region contributed $367 million, or 3.4%, and $345 million, or 3.2%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific accounted for 18.0% of the company's total revenue during the quarter, translating to $1.86 billion. Revenues from this region represented a surprise of +1.13%, with Wall Street analysts collectively expecting $1.84 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $2.07 billion (19%) and $1.99 billion (18.5%) to the total revenue, respectively.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for Thermo Fisher, as projected by Wall Street analysts, is expected to reach $10.5 billion, reflecting a decline of 1.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 25.4% or $2.67 billion, Other regions 3.5% or $370.09 million and Asia-Pacific 18.5% or $1.95 billion.
Analysts expect the company to report a total annual revenue of $42.92 billion for the full year, marking an increase of 0.1% compared to last year. The expected revenue contributions from Europe, Other regions and Asia-Pacific are projected to be 24.7% ($10.58 billion), 3.4% ($1.48 billion) and 18% ($7.73 billion) of the total revenue, in that order.
Concluding Remarks
Thermo Fisher'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 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.
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.
Over the preceding four weeks, the stock's value has diminished by 1.2%, against a downturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Thermo Fisher among its entities, has depreciated by 1.4%. Over the past three months, the company's shares have seen an increase of 3.9% versus the S&P 500's 3.8% increase. The sector overall has witnessed a decline of 0.9% over the same period.
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Don't Overlook Thermo Fisher (TMO) International Revenue Trends While Assessing the Stock
Have you evaluated the performance of Thermo Fisher Scientific's (TMO - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this maker of scientific instrument and laboratory supplies, analyzing the patterns in international revenues is crucial for understanding its financial resilience 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 TMO's 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.
The company's total revenue for the quarter stood at $10.35 billion, declining 3.4% year over year. Now, let's delve into TMO's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Exploring TMO's International Revenue Patterns
During the quarter, Europe contributed $2.62 billion in revenue, making up 25.3% of the total revenue. When compared to the consensus estimate of $2.51 billion, this meant a surprise of +4.33%. Looking back, Europe contributed $2.84 billion, or 26.1%, in the previous quarter, and $2.6 billion, or 24.3%, in the same quarter of the previous year.
Of the total revenue, $346 million came from Other regions during the last fiscal quarter, accounting for 3.3%. This represented a surprise of -1.34% as analysts had expected the region to contribute $350.7 million to the total revenue. In comparison, the region contributed $367 million, or 3.4%, and $345 million, or 3.2%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific accounted for 18.0% of the company's total revenue during the quarter, translating to $1.86 billion. Revenues from this region represented a surprise of +1.13%, with Wall Street analysts collectively expecting $1.84 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $2.07 billion (19%) and $1.99 billion (18.5%) to the total revenue, respectively.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for Thermo Fisher, as projected by Wall Street analysts, is expected to reach $10.5 billion, reflecting a decline of 1.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 25.4% or $2.67 billion, Other regions 3.5% or $370.09 million and Asia-Pacific 18.5% or $1.95 billion.
Analysts expect the company to report a total annual revenue of $42.92 billion for the full year, marking an increase of 0.1% compared to last year. The expected revenue contributions from Europe, Other regions and Asia-Pacific are projected to be 24.7% ($10.58 billion), 3.4% ($1.48 billion) and 18% ($7.73 billion) of the total revenue, in that order.
Concluding Remarks
Thermo Fisher'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 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.
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.
Currently, Thermo Fisher holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Thermo Fisher's Recent Stock Price Trends
Over the preceding four weeks, the stock's value has diminished by 1.2%, against a downturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Thermo Fisher among its entities, has depreciated by 1.4%. Over the past three months, the company's shares have seen an increase of 3.9% versus the S&P 500's 3.8% increase. The sector overall has witnessed a decline of 0.9% over the same period.