Have you evaluated the performance of The Manitowoc Company, Inc.'s (MTW) international operations during the quarter that concluded in December 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 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.

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.

While delving into MTW'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 amounted to $596 million, marking an increase of 0% 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.

A Look into MTW's International Revenue Streams

EURAF generated $170 million in revenues for the company in the last quarter, constituting 28.52% of the total. This represented a surprise of +30.96% compared to the $129.82 million projected by Wall Street analysts. Comparatively, in the previous quarter, EURAF accounted for $126.8 million (24.16%), and in the year-ago quarter, it contributed $155 million (26.02%) to the total revenue.

During the quarter, MEAP contributed $95.4 million in revenue, making up 16.01% of the total revenue. When compared to the consensus estimate of $110.11 million, this meant a surprise of -13.36%. Looking back, MEAP contributed $110.9 million, or 21.13%, in the previous quarter, and $90.2 million, or 15.14%, in the same quarter of the previous year.

International Revenue Predictions

Wall Street analysts expect The Manitowoc Company to report $469.06 million in total revenue for the current fiscal quarter, indicating a decline of 5.3% from the year-ago quarter. EURAF and MEAP are expected to contribute 36.9% ($173.1 million) and 20.9% ($97.95 million) to the total revenue, respectively.

For the full year, the company is expected to generate $2.21 billion in total revenue, up 1.6% from the previous year. Revenues from EURAF and MEAP are expected to constitute 27% ($597.53 million) and 19.2% ($423.69 million) of the total, respectively.

Concluding Remarks

The Manitowoc Company'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.

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.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At the moment, The Manitowoc Company has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in The Manitowoc Company's Stock Value

Over the past month, the stock has seen an increase of 10.8% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 2.3%. The Zacks Industrial Products sector, The Manitowoc Company's industry group, has descended 7.7% over the identical span. In the past three months, there's been an increase of 2.8% in the company's stock price, against a fall of 0.2% in the S&P 500 index. The broader sector has declined by 11.3% during this interval.

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

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