Have you evaluated the performance of M/A-Com's (MTSI Quick QuoteMTSI - Free Report) international operations during the quarter that concluded in March 2025? Considering the extensive worldwide presence of this chipmaker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

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.

Upon examining MTSI's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $235.89 million, experiencing an increase of 30.2% year over year. Next, we'll explore the breakdown of MTSI's international revenue to understand the importance of its overseas business operations.

A Look into MTSI's International Revenue Streams

Of the total revenue, $37.66 million came from Other Countries during the last fiscal quarter, accounting for 15.97%. This represented a surprise of -4.04% as analysts had expected the region to contribute $39.25 million to the total revenue. In comparison, the region contributed $25.62 million, or 11.75%, and $28.22 million, or 15.57%, to total revenue in the previous and year-ago quarters, respectively.

China generated $63.85 million in revenues for the company in the last quarter, constituting 27.07% of the total. This represented a surprise of +7.95% compared to the $59.15 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $62.73 million (28.76%), and in the year-ago quarter, it contributed $46.19 million (25.49%) to the total revenue.

During the quarter, Asia Pacific (excluding China) contributed $26.4 million in revenue, making up 11.19% of the total revenue. When compared to the consensus estimate of $28.2 million, this meant a surprise of -6.38%. Looking back, Asia Pacific (excluding China) contributed $20.54 million, or 9.42%, in the previous quarter, and $26.66 million, or 14.71%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

The current fiscal quarter's total revenue for M/A-Com, as projected by Wall Street analysts, is expected to reach $250.09 million, reflecting an increase of 31.3% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Other Countries is anticipated to contribute 15.8% or $39.44 million, China 23.3% or $58.29 million and Asia Pacific (excluding China) 10.5% or $26.34 million.

Analysts expect the company to report a total annual revenue of $953.19 million for the full year, marking an increase of 30.7% compared to last year. The expected revenue contributions from Other Countries, China and Asia Pacific (excluding China) are projected to be 16.6% ($158.58 million), 25.5% ($242.62 million) and 10.7% ($101.68 million) of the total revenue, in that order.

Key Takeaways

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

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.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

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.

At present, M/A-Com holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

M/A-Com's Recent Stock Market Performance

Over the preceding four weeks, the stock's value has appreciated by 23.7%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts M/A-Com among its entities, has appreciated by 11.9%. Over the past three months, the company's shares have seen a decline of 0.4% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 6.8% over the same period.