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Don't Overlook Agilent (A) International Revenue Trends While Assessing the Stock

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Have you looked into how Agilent Technologies (A - Free Report) performed internationally during the quarter ending April 2025? Considering the widespread global presence of this scientific instrument maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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 analyzing A'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.

The company's total revenue for the quarter amounted to $1.67 billion, showing rise of 6%. We will now explore the breakdown of A's overseas revenue to assess the impact of its international operations.

Exploring A's International Revenue Patterns

During the quarter, Asia Pacific contributed $548 million in revenue, making up 32.85% of the total revenue. When compared to the consensus estimate of $544.49 million, this meant a surprise of +0.65%. Looking back, Asia Pacific contributed $549 million, or 32.66%, in the previous quarter, and $510 million, or 32.42%, in the same quarter of the previous year.

Europe accounted for 26.50% of the company's total revenue during the quarter, translating to $442 million. Revenues from this region represented a surprise of +3.77%, with Wall Street analysts collectively expecting $425.95 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $463 million (27.54%) and $426 million (27.08%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

Wall Street analysts expect Agilent to report $1.66 billion in total revenue for the current fiscal quarter, indicating an increase of 5.1% from the year-ago quarter. Asia Pacific and Europe are expected to contribute 34.6% ($573.73 million) and 25.5% ($422.32 million) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $6.76 billion, which is an improvement of 3.8% from the previous year. The revenue contributions from different regions are expected as follows: Asia Pacific will contribute 33.8% ($2.29 billion) and Europe 26% ($1.75 billion) to the total revenue.

The Bottom Line

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

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.

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.

Agilent currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Agilent's Recent Stock Market Performance

The stock has increased by 3% over the past month compared to the 6.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes Agilent, has decreased 3.7% during this time frame. Over the past three months, the company's shares have experienced a loss of 11.7% relative to the S&P 500's 0.5% decline. Throughout this period, the sector overall has witnessed a 11.2% decrease.

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