Have you looked into how Lamb Weston (LW Quick QuoteLW - Free Report) performed internationally during the quarter ending November 2024? Considering the widespread global presence of this frozen foods supplier, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.

While analyzing LW'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.

The company's total revenue for the quarter amounted to $1.6 billion, marking a decrease of 7.6% from the year-ago quarter. We will next turn our attention to dissecting LW's international revenue to get a clearer picture of how significant its operations are outside its main base.

Exploring LW's International Revenue Patterns

North America accounted for 66.97% of the company's total revenue during the quarter, translating to $1.07 billion. Revenues from this region represented a surprise of -3.25%, with Wall Street analysts collectively expecting $1.11 billion. When compared to the preceding quarter and the same quarter in the previous year, North America contributed $1.1 billion (66.73%) and $1.17 billion (67.38%) to the total revenue, respectively.

Of the total revenue, $528.8 million came from International during the last fiscal quarter, accounting for 33.03%. This represented a surprise of -6.49% as analysts had expected the region to contribute $565.49 million to the total revenue. In comparison, the region contributed $550.4 million, or 33.27%, and $565 million, or 32.62%, to total revenue in the previous and year-ago quarters, respectively.

Prospective Revenues in International Markets

Wall Street analysts expect Lamb Weston to report $1.55 billion in total revenue for the current fiscal quarter, indicating an increase of 6.1% from the year-ago quarter. North America and International are expected to contribute 66.8% ($1.03 billion) and 36.9% ($569.81 million) to the total revenue, respectively.

For the full year, a total revenue of $6.49 billion is expected for the company, reflecting an increase of 0.3% from the year before. The revenues from North America and International are expected to make up 68.2% and 34.4% of this total, corresponding to $4.42 billion and $2.23 billion respectively.

In Conclusion

Lamb Weston'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.

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.

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.

At the moment, Lamb Weston has a Zacks Rank #4 (Sell), signifying that it may underperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Lamb Weston's Stock Value

The stock has declined by 19.3% over the past month compared to the 0.3% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Lamb Weston, has decreased 2.3% during this time frame. Over the past three months, the company's shares have experienced a loss of 7.1% relative to the S&P 500's 4.3% increase. Throughout this period, the sector overall has witnessed a 7.5% decrease.