Did you analyze how Eli Lilly (LLY Quick QuoteLLY - Free Report) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this drugmaker, 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 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.

In our recent assessment of LLY's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The recent quarter saw the company's total revenue reaching $13.53 billion, marking an improvement of 44.7% from the prior-year quarter. Next, we'll examine the breakdown of LLY's revenue from abroad to comprehend the significance of its international presence.

Decoding LLY's International Revenue Trends

China accounted for 3.17% of the company's total revenue during the quarter, translating to $429.2 million. Revenues from this region represented a surprise of -14.37%, with Wall Street analysts collectively expecting $501.21 million. When compared to the preceding quarter and the same quarter in the previous year, China contributed $459.9 million (4.02%) and $377.1 million (4.03%) to the total revenue, respectively.

Of the total revenue, $559.2 million came from Japan during the last fiscal quarter, accounting for 4.13%. This represented a surprise of +5.5% as analysts had expected the region to contribute $530.05 million to the total revenue. In comparison, the region contributed $429.1 million, or 3.75%, and $439.1 million, or 4.69%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other foreign countries contributed $1.06 billion in revenue, making up 7.86% of the total revenue. When compared to the consensus estimate of $1.22 billion, this meant a surprise of -12.77%. Looking back, Other foreign countries contributed $1.11 billion, or 9.69%, in the previous quarter, and $744.4 million, or 7.96%, in the same quarter of the previous year.

Europe generated $2.45 billion in revenues for the company in the last quarter, constituting 18.09% of the total. This represented a surprise of +35.04% compared to the $1.81 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $1.63 billion (14.23%), and in the year-ago quarter, it contributed $1.34 billion (14.30%) to the total revenue.

International Revenue Predictions

The current fiscal quarter's total revenue for Lilly, as projected by Wall Street analysts, is expected to reach $12.69 billion, reflecting an increase of 44.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: China is anticipated to contribute 4% or $509.97 million, Japan 4.1% or $524.74 million, Other foreign countries 10.3% or $1.3 billion and Europe 14.6% or $1.85 billion.

For the full year, the company is expected to generate $59.98 billion in total revenue, up 33.2% from the previous year. Revenues from China, Japan, Other foreign countries and Europe are expected to constitute 4% ($2.41 billion), 4.1% ($2.49 billion), 10.2% ($6.13 billion) and 14.5% ($8.69 billion) of the total, respectively.

Concluding Remarks

Relying on international markets for revenues, Lilly 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.

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 tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Lilly, bearing a Zacks Rank #3 (Hold), is expected to mirror 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 >>>>

Examining the Latest Trends in Lilly's Stock Value

The stock has witnessed an increase of 15% over the past month versus the Zacks S&P 500 composite's an increase of 2.6%. In the same interval, the Zacks Medical sector, to which Lilly belongs, has registered an increase of 4.6%. Over the past three months, the company's shares saw an increase of 10%, while the S&P 500 increased by 4.2%. In comparison, the sector experienced an increase of 1.5% during this timeframe.