Have you assessed how the international operations of Onto Innovation (ONTO Quick QuoteONTO - Free Report) performed in the quarter ended March 2025? For this maker of semiconductor manufacturing equipment, 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 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.

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.

Upon examining ONTO'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.

The recent quarter saw the company's total revenue reaching $266.61 million, marking an improvement of 16.5% from the prior-year quarter. Next, we'll examine the breakdown of ONTO's revenue from abroad to comprehend the significance of its international presence.

A Look into ONTO's International Revenue Streams

Europe accounted for 6.21% of the company's total revenue during the quarter, translating to $16.54 million. Revenues from this region represented a surprise of +20.06%, with Wall Street analysts collectively expecting $13.78 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $14.22 million (5.39%) and $6.23 million (2.72%) to the total revenue, respectively.

Of the total revenue, $102.58 million came from Taiwan during the last fiscal quarter, accounting for 38.48%. This represented a surprise of +24.63% as analysts had expected the region to contribute $82.31 million to the total revenue. In comparison, the region contributed $98.53 million, or 37.33%, and $71.1 million, or 31.07%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, South Korea contributed $93.31 million in revenue, making up 35.00% of the total revenue. When compared to the consensus estimate of $77.4 million, this meant a surprise of +20.56%. Looking back, South Korea contributed $57.74 million, or 21.88%, in the previous quarter, and $80.24 million, or 35.06%, in the same quarter of the previous year.

Japan generated $8.37 million in revenues for the company in the last quarter, constituting 3.14% of the total. This represented a surprise of -45.73% compared to the $15.42 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $11.83 million (4.48%), and in the year-ago quarter, it contributed $13.34 million (5.83%) to the total revenue.

During the quarter, Southeast Asia contributed $8.03 million in revenue, making up 3.01% of the total revenue. When compared to the consensus estimate of $17.66 million, this meant a surprise of -54.55%. Looking back, Southeast Asia contributed $9.12 million, or 3.45%, in the previous quarter, and $16.08 million, or 7.03%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

Wall Street analysts expect Onto Innovation to report a total revenue of $249.85 million in the current fiscal quarter, which suggests an increase of 3.1% from the prior-year quarter. Revenue shares from Europe, Taiwan, South Korea, Japan and Southeast Asia are predicted to be 6.2%, 32.9%, 29.4%, 6.2% and 7%, corresponding to amounts of $15.42 million, $82.29 million, $73.5 million, $15.42 million and $17.42 million, respectively.

For the full year, the company is projected to achieve a total revenue of $1.01 billion, which signifies a rise of 2.6% from the last year. The share of this revenue from various regions is expected to be: Europe at 5.9% ($60.19 million), Taiwan at 34.5% ($348.87 million), South Korea at 29.8% ($302.09 million), Japan at 6% ($60.66 million) and Southeast Asia at 6.6% ($66.85 million).

The Bottom Line

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

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' 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.

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.

Currently, Onto Innovation holds a Zacks Rank #5 (Strong Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Onto Innovation's Stock Value

Over the preceding four weeks, the stock's value has diminished by 22.6%, against an upturn of 9.1% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Onto Innovation among its entities, has appreciated by 11.9%. Over the past three months, the company's shares have seen a decline of 47.1% versus the S&P 500's 3.1% decline. The sector overall has witnessed a decline of 6.8% over the same period.