Have you evaluated the performance of Illumina's (ILMN Quick QuoteILMN - Free Report) international operations for the quarter ending March 2025? Given the extensive global presence of this genetic testing tools company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential 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.

While analyzing ILMN'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.

For the quarter, the company's total revenue amounted to $1.04 billion, experiencing a decline of 3.3% year over year. Next, we'll explore the breakdown of ILMN's international revenue to understand the importance of its overseas business operations.

A Closer Look at ILMN's Revenue Streams Abroad

During the quarter, Europe contributed $293 million in revenue, making up 28.15% of the total revenue. When compared to the consensus estimate of $287.35 million, this meant a surprise of +1.97%. Looking back, Europe contributed $326 million, or 29.53%, in the previous quarter, and $279 million, or 25.93%, in the same quarter of the previous year.

Of the total revenue, $106 million came from Asia-Pacific, Middle East and Africa during the last fiscal quarter, accounting for 10.18%. This represented a surprise of +2.24% as analysts had expected the region to contribute $103.68 million to the total revenue. In comparison, the region contributed $109 million, or 9.87%, and $116 million, or 10.78%, to total revenue in the previous and year-ago quarters, respectively.

Greater China accounted for 6.92% of the company's total revenue during the quarter, translating to $72 million. Revenues from this region represented a surprise of -2.78%, with Wall Street analysts collectively expecting $74.06 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $80 million (7.25%) and $78 million (7.25%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

Wall Street analysts expect Illumina to report a total revenue of $1.06 billion in the current fiscal quarter, which suggests a decline of 4.6% from the prior-year quarter. Revenue shares from Europe, Asia-Pacific, Middle East and Africa and Greater China are predicted to be 27.6%, 10% and 7.1%, corresponding to amounts of $293.03 million, $105.73 million and $75.52 million, respectively.

For the full year, a total revenue of $4.26 billion is expected for the company, reflecting a decline of 2.6% from the year before. The revenues from Europe, Asia-Pacific, Middle East and Africa and Greater China are expected to make up 28.1%, 10.1% and 7.2% of this total, corresponding to $1.2 billion, $431.31 million and $308.08 million respectively.

Concluding Remarks

The dependency of Illumina on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

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.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Illumina, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Illumina's Stock Price Movement in Recent Times

The stock has increased by 8.7% over the past month compared to the 9.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes Illumina, has increased 1.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 18.6% relative to the S&P 500's 3.1% decline. Throughout this period, the sector overall has witnessed an 8.7% decrease.