Have you assessed how the international operations of Moderna (MRNA) performed in the quarter ended December 2024? For this biotechnology 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 era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

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.

Our review of MRNA'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 recent quarter saw the company's total revenue reaching $966 million, marking a decline of 65.6% from the prior-year quarter. Next, we'll examine the breakdown of MRNA's revenue from abroad to comprehend the significance of its international presence.

Unveiling Trends in MRNA's International Revenues

Europe accounted for 30.23% of the company's total revenue during the quarter, translating to $292 million. Revenues from this region represented a surprise of +12.07%, with Wall Street analysts collectively expecting $260.55 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $281 million (15.09%) and $614 million (21.84%) to the total revenue, respectively.

Rest of world generated $397 million in revenues for the company in the last quarter, constituting 41.10% of the total. This represented a surprise of -27.97% compared to the $551.12 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of world accounted for $324 million (17.40%), and in the year-ago quarter, it contributed $1.38 billion (48.91%) to the total revenue.

Anticipated Revenues in Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Moderna will report a total revenue of $204.8 million, which reflects an increase of 22.6% from the same quarter in the previous year. The revenue contributions are expected to be 6.9% from Europe ($14.17 million) and 20% from Rest of world ($40.89 million).

For the full year, the company is projected to achieve a total revenue of $2.24 billion, which signifies a fall of 30.6% from the last year. The share of this revenue from various regions is expected to be: Europe at 15.7% ($353.16 million) and Rest of world at 30.8% ($691.55 million).

The Bottom Line

Moderna'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 an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the 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 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, Moderna holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Moderna's Recent Stock Price Performance

Over the past month, the stock has seen a decline of 14.2% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.5%. The Zacks Medical sector, Moderna's industry group, has ascended 2.7% over the identical span. In the past three months, there's been a decline of 17.5% in the company's stock price, against a rise of 1.4% in the S&P 500 index. The broader sector has declined by 0.1% during this interval.

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This article originally published on Zacks Investment Research (zacks.com).

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