Have you assessed how the international operations of The Manitowoc Company, Inc. (MTW) performed in the quarter ended March 2024? For this 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 MTW's 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 amounted to $495.1 million, marking a decrease of 2.6% from the year-ago quarter. We will next turn our attention to dissecting MTW's international revenue to get a clearer picture of how significant its operations are outside its main base.

Trends in MTW's Revenue from International Markets

Of the total revenue, $68.9 million came from MEAP during the last fiscal quarter, accounting for 13.9%. This represented a surprise of -4.43% as analysts had expected the region to contribute $72.1 million to the total revenue. In comparison, the region contributed $90.2 million, or 15.1%, and $65.7 million, or 12.9%, to total revenue in the previous and year-ago quarters, respectively.

EURAF generated $143 million in revenues for the company in the last quarter, constituting 28.9% of the total. This represented a surprise of -7.9% compared to the $155.27 million projected by Wall Street analysts. Comparatively, in the previous quarter, EURAF accounted for $155 million (26%), and in the year-ago quarter, it contributed $178.2 million (35.1%) to the total revenue.

International Revenue Predictions

Wall Street analysts expect The Manitowoc Company to report a total revenue of $610.06 million in the current fiscal quarter, which suggests an increase of 1.2% from the prior-year quarter. Revenue shares from MEAP and EURAF are predicted to be 17.9% and 27.4%, corresponding to amounts of $108.89 million and $167.1 million, respectively.

For the full year, the company is expected to generate $2.29 billion in total revenue, up 3% from the previous year. Revenues from MEAP and EURAF are expected to constitute 16.7% ($382.98 million) and 28.4% ($652.67 million) of the total, respectively.

Wrapping Up

Relying on global markets for revenues presents both prospects and challenges for The Manitowoc Company. 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.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

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.

The Manitowoc Company 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 >>>>

The Manitowoc Company's Recent Stock Market Performance

The stock has declined by 9.7% over the past month compared to the 0.2% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Industrial Products sector, which includes The Manitowoc Company, has decreased 1.1% during this time frame. Over the past three months, the company's shares have experienced a loss of 16% relative to the S&P 500's 4.1% increase. Throughout this period, the sector overall has witnessed a 7.2% increase.

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