Have you looked into how MKS Instruments (MKSI Quick QuoteMKSI - Free Report) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this maker of analysis and processing equipment for semiconductor companies, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

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.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of MKSI'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 $936 million, experiencing an increase of 7.8% year over year. Next, we'll explore the breakdown of MKSI's international revenue to understand the importance of its overseas business operations.

Trends in MKSI's Revenue from International Markets

Of the total revenue, $68 million came from Japan during the last fiscal quarter, accounting for 7.26%. This represented a surprise of +7.39% as analysts had expected the region to contribute $63.32 million to the total revenue. In comparison, the region contributed $73 million, or 7.81%, and $49 million, or 5.65%, to total revenue in the previous and year-ago quarters, respectively.

China generated $219 million in revenues for the company in the last quarter, constituting 23.40% of the total. This represented a surprise of +11.48% compared to the $196.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $214 million (22.89%), and in the year-ago quarter, it contributed $157 million (18.09%) to the total revenue.

Other International accounted for 26.28% of the company's total revenue during the quarter, translating to $246 million. Revenues from this region represented a surprise of +3.54%, with Wall Street analysts collectively expecting $237.58 million. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $244 million (26.10%) and $209 million (24.08%) to the total revenue, respectively.

Anticipated Revenues in Overseas Markets

Wall Street analysts expect MKS Instruments to report a total revenue of $923.51 million in the current fiscal quarter, which suggests an increase of 4.1% from the prior-year quarter. Revenue shares from Japan, China and Other International are predicted to be 7%, 22% and 25.9%, corresponding to amounts of $64.88 million, $203.08 million and $239.16 million, respectively.

For the entire year, the company's total revenue is forecasted to be $3.76 billion, which is an improvement of 5% from the previous year. The revenue contributions from different regions are expected as follows: Japan will contribute 7.2% ($269.45 million), China 22% ($828.27 million) and Other International 26.1% ($982.02 million) to the total revenue.

The Bottom Line

Relying on global markets for revenues presents both prospects and challenges for MKS Instruments. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

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.

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.

At the moment, MKS Instruments 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 >>>>

Reviewing MKS Instruments' Recent Stock Price Trends

Over the past month, the stock has gained 32.5% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Computer and Technology sector, of which MKS Instruments is a part, has risen 11.9% over the same period. The company's shares have declined 12.5% over the past three months compared to the S&P 500's 3.1% decline. Over the same period, the sector has declined 6.8%.