Back to top

Image: Bigstock

Unlocking NETGEAR (NTGR) International Revenues: Trends, Surprises, and Prospects

Read MoreHide Full Article

Have you assessed how the international operations of NETGEAR, Inc. (NTGR - Free Report) performed in the quarter ended March 2025? For this company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

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.

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 analyzing NTGR'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 $162.06 million, marking a decrease of 1.5% from the year-ago quarter. We will next turn our attention to dissecting NTGR's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in NTGR's International Revenues

APAC generated $22.17 million in revenues for the company in the last quarter, constituting 13.68% of the total. This represented a surprise of +8.04% compared to the $20.52 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $23.64 million (12.96%), and in the year-ago quarter, it contributed $23.47 million (14.26%) to the total revenue.

During the quarter, EMEA contributed $32.13 million in revenue, making up 19.83% of the total revenue. When compared to the consensus estimate of $28.7 million, this meant a surprise of +11.95%. Looking back, EMEA contributed $35.92 million, or 19.69%, in the previous quarter, and $31.19 million, or 18.95%, in the same quarter of the previous year.

Prospective Revenues in International Markets

The current fiscal quarter's total revenue for NETGEAR, as projected by Wall Street analysts, is expected to reach $162.06 million, reflecting an increase of 12.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: APAC is anticipated to contribute 12.5% or $20.31 million and EMEA 17.8% or $28.78 million.

Analysts expect the company to report a total annual revenue of $685.46 million for the full year, marking an increase of 1.7% compared to last year. The expected revenue contributions from APAC and EMEA are projected to be 13.2% ($90.15 million) and 18.8% ($128.91 million) of the total revenue, in that order.

Wrapping Up

Relying on international markets for revenues, NETGEAR faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these 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.

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.

At the moment, NETGEAR has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

NETGEAR's Recent Stock Market Performance

The stock has witnessed an increase of 30% over the past month versus the Zacks S&P 500 composite's an increase of 9.1%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered an increase of 11.9%. Over the past three months, the company's shares saw an increase of 3.2%, while the S&P 500 declined by 3.1%. In comparison, the sector experienced a decline of 6.8% during this timeframe.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NETGEAR, Inc. (NTGR) - free report >>

Published in