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Unlocking Terex (TEX) International Revenues: Trends, Surprises, and Prospects

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Have you evaluated the performance of Terex's (TEX - Free Report) international operations for the quarter ending March 2025? Given the extensive global presence of this machinery products maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

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.

While delving into TEX's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $1.23 billion, declining 4.9% year over year. Now, let's delve into TEX's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Decoding TEX's International Revenue Trends

Western Europe generated $162 million in revenues for the company in the last quarter, constituting 13.18% of the total. This represented a surprise of -33.91% compared to the $245.13 million projected by Wall Street analysts. Comparatively, in the previous quarter, Western Europe accounted for $157 million (12.65%), and in the year-ago quarter, it contributed $261.9 million (20.26%) to the total revenue.

During the quarter, Asia-Pacific contributed $102 million in revenue, making up 8.30% of the total revenue. When compared to the consensus estimate of $135.27 million, this meant a surprise of -24.6%. Looking back, Asia-Pacific contributed $137 million, or 11.04%, in the previous quarter, and $147 million, or 11.37%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

The current fiscal quarter's total revenue for Terex, as projected by Wall Street analysts, is expected to reach $1.46 billion, reflecting an increase of 5.5% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Western Europe is anticipated to contribute 16.5% or $240.62 million and Asia-Pacific 12.2% or $178.16 million.

For the full year, the company is projected to achieve a total revenue of $5.32 billion, which signifies a rise of 3.7% from the last year. The share of this revenue from various regions is expected to be: Western Europe at 14.9% ($794.87 million) and Asia-Pacific at 11.8% ($629.27 million).

Final Thoughts

Terex's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

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.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

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.

At present, Terex holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Terex's Stock Price Movement in Recent Times

Over the past month, the stock has gained 26.9% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Industrial Products sector, of which Terex is a part, has risen 12.7% over the same period. The company's shares have declined 1.6% over the past three months compared to the S&P 500's 3.1% decline. Over the same period, the sector has declined 2.7%.

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