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NETGEAR (NTGR) International Revenue Performance Explored

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Have you evaluated the performance of NETGEAR, Inc.'s (NTGR - Free Report) international operations during the quarter that concluded in March 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall 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 delving into NTGR'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 amounted to $164.59 million, showing decrease of 9%. We will now explore the breakdown of NTGR's overseas revenue to assess the impact of its international operations.

Unveiling Trends in NTGR's International Revenues

APAC generated $23.47 million in revenues for the company in the last quarter, constituting 14.3% of the total. This represented a surprise of +21.11% compared to the $19.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $25.98 million (13.8%), and in the year-ago quarter, it contributed $19.81 million (11%) to the total revenue.

During the quarter, EMEA contributed $31.19 million in revenue, making up 19.0% of the total revenue. When compared to the consensus estimate of $33.03 million, this meant a surprise of -5.58%. Looking back, EMEA contributed $37.9 million, or 20.1%, in the previous quarter, and $39.18 million, or 21.7%, in the same quarter of the previous year.

International Market Revenue Projections

For the current fiscal quarter, it is anticipated by Wall Street analysts that NETGEAR will report a total revenue of $132.94 million, which reflects a decline of 23.3% from the same quarter in the previous year. The revenue contributions are expected to be 17.9% from APAC ($23.81 million) and 28.9% from EMEA ($38.46 million).

For the entire year, the company's total revenue is forecasted to be $705.58 million, which is a reduction of 4.8% from the previous year. The revenue contributions from different regions are expected as follows: APAC will contribute 12.8% ($90.52 million) and EMEA 21% ($148.1 million) to the total revenue.

In Conclusion

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

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, 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.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

NETGEAR currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at NETGEAR's Recent Stock Price Performance

The stock has witnessed a decline of 22.6% over the past month versus the Zacks S&P 500 composite's a decrease of 1.6%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered a decrease of 0.7%. Over the past three months, the company's shares saw a decrease of 9.6%, while the S&P 500 increased by 3.8%. In comparison, the sector experienced an increase of 4.2% during this timeframe.

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