Have you looked into how Illumina (ILMN Quick QuoteILMN - Free Report) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this genetic testing tools company, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.

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 delving into ILMN'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 $1.08 billion, declining 3.5% year over year. Now, let's delve into ILMN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into ILMN's International Revenue Trends

Europe accounted for 26.94% of the company's total revenue during the quarter, translating to $291 million. Revenues from this region represented a surprise of -4.03%, with Wall Street analysts collectively expecting $303.22 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $289 million (25.99%) and $260 million (23.24%) to the total revenue, respectively.

Of the total revenue, $105 million came from Asia-Pacific, Middle East and Africa during the last fiscal quarter, accounting for 9.72%. This represented a surprise of -12.03% as analysts had expected the region to contribute $119.36 million to the total revenue. In comparison, the region contributed $108 million, or 9.71%, and $98 million, or 8.76%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Greater China contributed $75 million in revenue, making up 6.94% of the total revenue. When compared to the consensus estimate of $78.93 million, this meant a surprise of -4.98%. Looking back, Greater China contributed $75 million, or 6.74%, in the previous quarter, and $98 million, or 8.76%, in the same quarter of the previous year.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect Illumina to report $1.07 billion in total revenue for the current fiscal quarter, indicating a decline of 4.7% from the year-ago quarter. Europe, Asia-Pacific, Middle East and Africa and Greater China are expected to contribute 28.3% ($302.59 million), 11.1% ($119.11 million) and 7.4% ($78.77 million) to the total revenue, respectively.

For the full year, the company is projected to achieve a total revenue of $4.31 billion, which signifies a fall of 4.2% from the last year. The share of this revenue from various regions is expected to be: Europe at 27.6% ($1.19 billion), Asia-Pacific, Middle East and Africa at 11% ($475.12 million) and Greater China at 7.3% ($315.48 million).

Wrapping Up

Illumina'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 a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Illumina 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 Review of Illumina's Recent Stock Market Performance

Over the past month, the stock has gained 8.5% versus the Zacks S&P 500 composite's 3.2% increase. The Zacks Medical sector, of which Illumina is a part, has declined 3% over the same period. The company's shares have increased 24.2% over the past three months compared to the S&P 500's 13.5% increase. Over the same period, the sector has declined 2.3%.