Have you assessed how the international operations of Illumina (ILMN) performed in the quarter ended December 2024? For this genetic testing tools company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

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 analyzing ILMN'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 $1.1 billion, showing decrease of 1.6%. We will now explore the breakdown of ILMN's overseas revenue to assess the impact of its international operations.

A Look into ILMN's International Revenue Streams

Europe generated $326 million in revenues for the company in the last quarter, constituting 29.53% of the total. This represented a surprise of +13.38% compared to the $287.53 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $291 million (26.94%), and in the year-ago quarter, it contributed $315 million (28.07%) to the total revenue.

During the quarter, Asia-Pacific, Middle East and Africa contributed $109 million in revenue, making up 9.87% of the total revenue. When compared to the consensus estimate of $103.75 million, this meant a surprise of +5.06%. Looking back, Asia-Pacific, Middle East and Africa contributed $105 million, or 9.72%, in the previous quarter, and $124 million, or 11.05%, in the same quarter of the previous year.

Greater China accounted for 7.25% of the company's total revenue during the quarter, translating to $80 million. Revenues from this region represented a surprise of +7.95%, with Wall Street analysts collectively expecting $74.11 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $75 million (6.94%) and $82 million (7.31%) to the total revenue, respectively.

Anticipated Revenues in Overseas Markets

The current fiscal quarter's total revenue for Illumina, as projected by Wall Street analysts, is expected to reach $1.07 billion, reflecting a decline of 0.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 26.8% or $286.68 million, Asia-Pacific, Middle East and Africa 9.7% or $103.44 million and Greater China 6.9% or $73.89 million.

For the full year, the company is projected to achieve a total revenue of $4.36 billion, which signifies a fall of 0.3% from the last year. The share of this revenue from various regions is expected to be: Europe at 27.1% ($1.18 billion), Asia-Pacific, Middle East and Africa at 9.8% ($426.33 million) and Greater China at 7% ($304.52 million).

Key Takeaways

Illumina's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

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.

Illumina 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 >>>>

Exploring Recent Trends in Illumina's Stock Price

The stock has witnessed a decline of 18.8% over the past month versus the Zacks S&P 500 composite's an increase of 2.1%. In the same interval, the Zacks Medical sector, to which Illumina belongs, has registered an increase of 4.1%. Over the past three months, the company's shares saw a decrease of 17.8%, while the S&P 500 increased by 1.2%. In comparison, the sector experienced a decline of 4.2% during this timeframe.

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