Have you looked into how Garmin (GRMN) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this maker of personal navigation devices, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad 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 delving into GRMN'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 $1.38 billion, increasing 20.4% year over year. Now, let's delve into GRMN's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into GRMN's International Revenue Trends

APAC generated $202.15 million in revenues for the company in the last quarter, constituting 14.6% of the total. This represented a surprise of +0.64% compared to the $200.87 million projected by Wall Street analysts. Comparatively, in the previous quarter, APAC accounted for $226.41 million (15.3%), and in the year-ago quarter, it contributed $179.87 million (15.7%) to the total revenue.

EMEA accounted for 33.5% of the company's total revenue during the quarter, translating to $463.38 million. Revenues from this region represented a surprise of +10.4%, with Wall Street analysts collectively expecting $419.75 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $523.44 million (35.3%) and $355.85 million (31%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

Wall Street analysts expect Garmin to report a total revenue of $1.47 billion in the current fiscal quarter, which suggests an increase of 11.4% from the prior-year quarter. Revenue shares from APAC and EMEA are predicted to be 15.5% and 35.3%, corresponding to amounts of $227.32 million and $518.73 million, respectively.

For the entire year, the company's total revenue is forecasted to be $5.9 billion, which is an improvement of 12.9% from the previous year. The revenue contributions from different regions are expected as follows: APAC will contribute 15.6% ($919.42 million) and EMEA 34.1% ($2.01 billion) to the total revenue.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Garmin. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings 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 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, Garmin holds a Zacks Rank #1 (Strong Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Garmin's Recent Stock Price Performance

The stock has witnessed an increase of 12.5% over the past month versus the Zacks S&P 500 composite's a decrease of 1.6%. In the same interval, the Zacks Computer and Technology sector, to which Garmin belongs, has registered a decrease of 0.7%. Over the past three months, the company's shares saw an increase of 34.6%, while the S&P 500 increased by 3.8%. In comparison, the sector experienced an increase of 4.2% during this timeframe.

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