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Have you evaluated the performance of NETGEAR, Inc.'s (NTGR) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial resilience 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.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Our review of NTGR's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $182.85 million, showing decrease of 7.6%. We will now explore the breakdown of NTGR's overseas revenue to assess the impact of its international operations.
Trends in NTGR's Revenue from International Markets
Of the total revenue, $22.3 million came from APAC during the last fiscal quarter, accounting for 12.20%. This represented a surprise of +0.42% as analysts had expected the region to contribute $22.21 million to the total revenue. In comparison, the region contributed $21.04 million, or 14.62%, and $21.14 million, or 10.69%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, EMEA contributed $32.8 million in revenue, making up 17.94% of the total revenue. When compared to the consensus estimate of $31.67 million, this meant a surprise of +3.56%. Looking back, EMEA contributed $27.36 million, or 19.01%, in the previous quarter, and $35.68 million, or 18.04%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that NETGEAR will report a total revenue of $167.47 million, which reflects a decline of 11.2% from the same quarter in the previous year. The revenue contributions are expected to be 14.4% from APAC ($24.04 million) and 19.8% from EMEA ($33.1 million).