Have you assessed how the international operations of Avanos Medical (AVNS Quick QuoteAVNS - Free Report) performed in the quarter ended March 2025? For this medical technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

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.

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.

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

The company's total revenue for the quarter stood at $167.5 million, increasing 0.8% year over year. Now, let's delve into AVNS' international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Decoding AVNS' International Revenue Trends

Europe, Middle East and Africa accounted for 14.15% of the company's total revenue during the quarter, translating to $23.7 million. Revenues from this region represented a surprise of +3.4%, with Wall Street analysts collectively expecting $22.92 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $25.1 million (13.98%) and $23 million (13.85%) to the total revenue, respectively.

Of the total revenue, $13 million came from Asia Pacific and Latin America during the last fiscal quarter, accounting for 7.76%. This represented a surprise of +12.07% as analysts had expected the region to contribute $11.6 million to the total revenue. In comparison, the region contributed $12.5 million, or 6.96%, and $11 million, or 6.62%, to total revenue in the previous and year-ago quarters, respectively.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Avanos Medical will report a total revenue of $167.69 million, which reflects a decline of 2.3% from the same quarter in the previous year. The revenue contributions are expected to be 13.9% from Europe, Middle East and Africa ($23.3 million) and 7.1% from Asia Pacific and Latin America ($11.96 million).

For the entire year, the company's total revenue is forecasted to be $677.36 million, which is a reduction of 1.5% from the previous year. The revenue contributions from different regions are expected as follows: Europe, Middle East and Africa will contribute 13.8% ($93.73 million) and Asia Pacific and Latin America 7.1% ($47.96 million) to the total revenue.

The Bottom Line

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

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.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

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, Avanos Medical holds a Zacks Rank #5 (Strong Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Avanos Medical's Recent Stock Price Trends

The stock has increased by 5.6% over the past month compared to the 9.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes Avanos Medical, has increased 1.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 20.9% relative to the S&P 500's 3.1% decline. Throughout this period, the sector overall has witnessed an 8.7% decrease.