Have you evaluated the performance of Phibro Animal Health's (PAHC Quick QuotePAHC - Free Report) international operations for the quarter ending September 2024? Given the extensive global presence of this maker of animal health products and nutritional supplements, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

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 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 analyzing PAHC's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

For the quarter, the company's total revenue amounted to $260.4 million, experiencing an increase of 12.6% year over year. Next, we'll explore the breakdown of PAHC's international revenue to understand the importance of its overseas business operations.

Unveiling Trends in PAHC's International Revenues

During the quarter, Latin America and Canada contributed $71.15 million in revenue, making up 27.32% of the total revenue. When compared to the consensus estimate of $72.04 million, this meant a surprise of -1.23%. Looking back, Latin America and Canada contributed $70.17 million, or 25.69%, in the previous quarter, and $58.7 million, or 25.38%, in the same quarter of the previous year.

Europe, Middle East and Africa generated $31.13 million in revenues for the company in the last quarter, constituting 11.95% of the total. This represented a surprise of -17.47% compared to the $37.72 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $32.41 million (11.86%), and in the year-ago quarter, it contributed $26.88 million (11.62%) to the total revenue.

Of the total revenue, $14.61 million came from Asia Pacific during the last fiscal quarter, accounting for 5.61%. This represented a surprise of -17.01% as analysts had expected the region to contribute $17.6 million to the total revenue. In comparison, the region contributed $16.91 million, or 6.19%, and $14.48 million, or 6.26%, to total revenue in the previous and year-ago quarters, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Phibro to report a total revenue of $296.61 million in the current fiscal quarter, which suggests an increase of 18.7% from the prior-year quarter. Revenue shares from Latin America and Canada, Europe, Middle East and Africa and Asia Pacific are predicted to be 25.3%, 13.4% and 6.1%, corresponding to amounts of $75.16 million, $39.79 million and $18.13 million, respectively.

For the full year, a total revenue of $1.08 billion is expected for the company, reflecting an increase of 6.5% from the year before. The revenues from Latin America and Canada, Europe, Middle East and Africa and Asia Pacific are expected to make up 25.9%, 15.3% and 7.1% of this total, corresponding to $280.33 million, $165.36 million and $77.11 million respectively.

Wrapping Up

Phibro'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.

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.

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.

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.

Phibro, bearing a Zacks Rank #1 (Strong Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Phibro's Stock Price Movement in Recent Times

Over the preceding four weeks, the stock's value has appreciated by 1.5%, against an upturn of 4.4% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Phibro among its entities, has depreciated by 1.4%. Over the past three months, the company's shares have seen an increase of 32.1% versus the S&P 500's 13.1% increase. The sector overall has witnessed a decline of 2% over the same period.