Back to top

Image: Bigstock

Exelixis (EXEL) International Revenue Performance Explored

Read MoreHide Full Article

Have you assessed how the international operations of Exelixis (EXEL - Free Report) performed in the quarter ended March 2024? For this drug developer, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

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.

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.

In our recent assessment of EXEL's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

For the quarter, the company's total revenue amounted to $425.23 million, experiencing an increase of 4% year over year. Next, we'll explore the breakdown of EXEL's international revenue to understand the importance of its overseas business operations.

A Look into EXEL's International Revenue Streams

During the quarter, Europe contributed $35.7 million in revenue, making up 8.4% of the total revenue. When compared to the consensus estimate of $35.63 million, this meant a surprise of +0.21%. Looking back, Europe contributed $38.68 million, or 8.1%, in the previous quarter, and $33.53 million, or 8.2%, in the same quarter of the previous year.

Japan generated $7.59 million in revenues for the company in the last quarter, constituting 1.8% of the total. This represented a surprise of -21.55% compared to the $9.67 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $8.31 million (1.7%), and in the year-ago quarter, it contributed $7.81 million (1.9%) to the total revenue.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Exelixis to report a total revenue of $480.46 million in the current fiscal quarter, which suggests an increase of 2.3% from the prior-year quarter. Revenue shares from Europe and Japan are predicted to be 7.8% and 2.2%, corresponding to amounts of $37.28 million and $10.5 million, respectively.

Analysts expect the company to report a total annual revenue of $1.89 billion for the full year, marking an increase of 3.4% compared to last year. The expected revenue contributions from Europe and Japan are projected to be 7.8% ($148.19 million) and 2% ($38.49 million) of the total revenue, in that order.

Key Takeaways

Exelixis' 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.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

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 the moment, Exelixis 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 >>>>

Exploring Recent Trends in Exelixis' Stock Price

Over the preceding four weeks, the stock's value has diminished by 5.4%, against a downturn of 1.6% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Exelixis among its entities, has depreciated by 1.4%. Over the past three months, the company's shares have seen an increase of 8.3% versus the S&P 500's 3.8% increase. The sector overall has witnessed a decline of 0.9% over the same period.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Exelixis, Inc. (EXEL) - free report >>

Published in