Have you evaluated the performance of Bio-Rad Laboratories' (BIO) international operations during the quarter that concluded in September 2024? Considering the extensive worldwide presence of this maker of instruments used in biomedical research, 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.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Upon examining BIO's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $649.73 million, experiencing an increase of 2.8% year over year. Next, we'll explore the breakdown of BIO's international revenue to understand the importance of its overseas business operations.

Exploring BIO's International Revenue Patterns

Of the total revenue, $126.9 million came from Asia during the last fiscal quarter, accounting for 19.53%. This represented a surprise of -2.42% as analysts had expected the region to contribute $130.04 million to the total revenue. In comparison, the region contributed $131.2 million, or 20.55%, and $118.9 million, or 18.81%, to total revenue in the previous and year-ago quarters, respectively.

EMEA generated $205.7 million in revenues for the company in the last quarter, constituting 31.66% of the total. This represented a surprise of +4.19% compared to the $197.42 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $206.5 million (32.34%), and in the year-ago quarter, it contributed $193.1 million (30.55%) to the total revenue.

During the quarter, Other (primarily Canada and Latin America) contributed $40.9 million in revenue, making up 6.29% of the total revenue. When compared to the consensus estimate of $45.61 million, this meant a surprise of -10.33%. Looking back, Other (primarily Canada and Latin America) contributed $46.6 million, or 7.30%, in the previous quarter, and $44.7 million, or 7.07%, in the same quarter of the previous year.

International Market Revenue Projections

Wall Street analysts expect Bio-Rad to report $684.96 million in total revenue for the current fiscal quarter, indicating an increase of 0.6% from the year-ago quarter. Asia, EMEA and Other (primarily Canada and Latin America) are expected to contribute 23.2% ($158.72 million), 31.2% ($213.93 million) and 7.1% ($48.54 million) to the total revenue, respectively.

For the full year, the company is expected to generate $2.58 billion in total revenue, down 3.5% from the previous year. Revenues from Asia, EMEA and Other (primarily Canada and Latin America) are expected to constitute 20.8% ($537.16 million), 31.7% ($818.05 million) and 7% ($181.25 million) of the total, respectively.

The Bottom Line

The dependency of Bio-Rad on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

At the moment, Bio-Rad 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 >>>>

Assessing Bio-Rad's Stock Price Movement in Recent Times

Over the past month, the stock has seen an increase of 7.2% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.4%. The Zacks Medical sector, Bio-Rad's industry group, has descended 3.5% over the identical span. In the past three months, there's been an increase of 13.3% in the company's stock price, against a rise of 5.5% in the S&P 500 index. The broader sector has declined by 4.1% during this interval.

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