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Investing in The Manitowoc Company (MTW)? Don't Miss Assessing Its International Revenue Trends

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Did you analyze how The Manitowoc Company, Inc. (MTW - Free Report) fared in its international operations for the quarter ending March 2025? Given the widespread global presence of this company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

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.

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

For the quarter, the company's total revenue amounted to $470.9 million, experiencing a decline of 4.9% year over year. Next, we'll explore the breakdown of MTW's international revenue to understand the importance of its overseas business operations.

A Dive into MTW's International Revenue Trends

EURAF accounted for 30.92% of the company's total revenue during the quarter, translating to $145.6 million. Revenues from this region represented a surprise of +4%, with Wall Street analysts collectively expecting $140 million. When compared to the preceding quarter and the same quarter in the previous year, EURAF contributed $170 million (28.52%) and $143 million (28.88%) to the total revenue, respectively.

Of the total revenue, $66 million came from MEAP during the last fiscal quarter, accounting for 14.02%. This represented a surprise of -5.71% as analysts had expected the region to contribute $70 million to the total revenue. In comparison, the region contributed $95.4 million, or 16.01%, and $68.9 million, or 13.92%, to total revenue in the previous and year-ago quarters, respectively.

Projected Revenues in Foreign Markets

It is projected by analysts on Wall Street that The Manitowoc Company will post revenues of $570 million for the ongoing fiscal quarter, an increase of 1.4% from the year-ago quarter. The expected contributions from EURAF and MEAP to this revenue are 31.1% and 17.2%, translating into $177 million and $98 million, respectively.

For the full year, the company is expected to generate $2.23 billion in total revenue, up 2.2% from the previous year. Revenues from EURAF and MEAP are expected to constitute 28.5% ($635 million) and 17.5% ($390 million) of the total, respectively.

The Bottom Line

The Manitowoc Company's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

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.

The Manitowoc Company currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of The Manitowoc Company's Recent Stock Market Performance

The stock has witnessed an increase of 46.7% over the past month versus the Zacks S&P 500 composite's an increase of 9.1%. In the same interval, the Zacks Industrial Products sector, to which The Manitowoc Company belongs, has registered an increase of 12.7%. Over the past three months, the company's shares saw a decrease of 0.2%, while the S&P 500 declined by 3.1%. In comparison, the sector experienced a decline of 2.7% during this timeframe.

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