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Unlocking Watts Water (WTS) International Revenues: Trends, Surprises, and Prospects
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Did you analyze how Watts Water (WTS - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this maker of valves for plumbing, heating and water needs, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
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.
Our review of WTS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $570.9 million, showing rise of 21%. We will now explore the breakdown of WTS' overseas revenue to assess the impact of its international operations.
A Closer Look at WTS' Revenue Streams Abroad
During the quarter, Europe contributed $123.3 million in revenue, making up 21.6% of the total revenue. When compared to the consensus estimate of $124.7 million, this meant a surprise of -1.12%. Looking back, Europe contributed $128 million, or 23.4%, in the previous quarter, and $128.3 million, or 27.2%, in the same quarter of the previous year.
Of the total revenue, $28.8 million came from APMEA during the last fiscal quarter, accounting for 5.0%. This represented a surprise of -1.71% as analysts had expected the region to contribute $29.3 million to the total revenue. In comparison, the region contributed $32.5 million, or 5.9%, and $20.2 million, or 4.3%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Watts Water, as projected by Wall Street analysts, is expected to reach $594.97 million, reflecting an increase of 11.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 21.3% or $126.8 million and APMEA 5.2% or $31.15 million.
For the full year, the company is expected to generate $2.26 billion in total revenue, up 10.1% from the previous year. Revenues from Europe and APMEA are expected to constitute 21.5% ($487.7 million) and 5.7% ($129.35 million) of the total, respectively.
Key Takeaways
Watts Water's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Assessing Watts Water's Stock Price Movement in Recent Times
The stock has witnessed an increase of 6.1% over the past month versus the Zacks S&P 500 composite's an increase of 1.3%. In the same interval, the Zacks Computer and Technology sector, to which Watts Water belongs, has registered an increase of 1.4%. Over the past three months, the company's shares saw an increase of 7.5%, while the S&P 500 increased by 4.3%. In comparison, the sector experienced an increase of 2.2% during this timeframe.
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Unlocking Watts Water (WTS) International Revenues: Trends, Surprises, and Prospects
Did you analyze how Watts Water (WTS - Free Report) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this maker of valves for plumbing, heating and water needs, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
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.
Our review of WTS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $570.9 million, showing rise of 21%. We will now explore the breakdown of WTS' overseas revenue to assess the impact of its international operations.
A Closer Look at WTS' Revenue Streams Abroad
During the quarter, Europe contributed $123.3 million in revenue, making up 21.6% of the total revenue. When compared to the consensus estimate of $124.7 million, this meant a surprise of -1.12%. Looking back, Europe contributed $128 million, or 23.4%, in the previous quarter, and $128.3 million, or 27.2%, in the same quarter of the previous year.
Of the total revenue, $28.8 million came from APMEA during the last fiscal quarter, accounting for 5.0%. This represented a surprise of -1.71% as analysts had expected the region to contribute $29.3 million to the total revenue. In comparison, the region contributed $32.5 million, or 5.9%, and $20.2 million, or 4.3%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International Markets
The current fiscal quarter's total revenue for Watts Water, as projected by Wall Street analysts, is expected to reach $594.97 million, reflecting an increase of 11.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 21.3% or $126.8 million and APMEA 5.2% or $31.15 million.
For the full year, the company is expected to generate $2.26 billion in total revenue, up 10.1% from the previous year. Revenues from Europe and APMEA are expected to constitute 21.5% ($487.7 million) and 5.7% ($129.35 million) of the total, respectively.
Key Takeaways
Watts Water's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
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.
Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Watts Water 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 >>>>
Assessing Watts Water's Stock Price Movement in Recent Times
The stock has witnessed an increase of 6.1% over the past month versus the Zacks S&P 500 composite's an increase of 1.3%. In the same interval, the Zacks Computer and Technology sector, to which Watts Water belongs, has registered an increase of 1.4%. Over the past three months, the company's shares saw an increase of 7.5%, while the S&P 500 increased by 4.3%. In comparison, the sector experienced an increase of 2.2% during this timeframe.