Did you analyze how Bio-Rad Laboratories (BIO) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this maker of instruments used in biomedical research, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

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.

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.

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 $667.5 million, experiencing a decline of 2% year over year. Next, we'll explore the breakdown of BIO's international revenue to understand the importance of its overseas business operations.

Decoding BIO's International Revenue Trends

Asia generated $146.4 million in revenues for the company in the last quarter, constituting 21.93% of the total. This represented a surprise of -4.96% compared to the $154.04 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $126.9 million (19.53%), and in the year-ago quarter, it contributed $164.1 million (24.09%) to the total revenue.

Of the total revenue, $221.7 million came from EMEA during the last fiscal quarter, accounting for 33.21%. This represented a surprise of +6.78% as analysts had expected the region to contribute $207.63 million to the total revenue. In comparison, the region contributed $205.7 million, or 31.66%, and $210.7 million, or 30.93%, to total revenue in the previous and year-ago quarters, respectively.

Revenue Projections for Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Bio-Rad will report a total revenue of $598.88 million, which reflects a decline of 2% from the same quarter in the previous year. The revenue contributions are expected to be 22.3% from Asia ($133.44 million) and 33.5% from EMEA ($200.43 million).

For the entire year, the company's total revenue is forecasted to be $2.61 billion, which is an improvement of 1.7% from the previous year. The revenue contributions from different regions are expected as follows: Asia will contribute 22.4% ($584.15 million) and EMEA 31.9% ($831.63 million) to the total revenue.

The Bottom Line

Relying on international markets for revenues, Bio-Rad faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

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.

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.

Bio-Rad 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 >>>>

Examining the Latest Trends in Bio-Rad's Stock Value

The stock has witnessed a decline of 24.4% over the past month versus the Zacks S&P 500 composite's a decrease of 2.3%. In the same interval, the Zacks Medical sector, to which Bio-Rad belongs, has registered an increase of 2.2%. Over the past three months, the company's shares saw a decrease of 16.5%, while the S&P 500 declined by 0.2%. In comparison, the sector experienced a decline of 0.4% during this timeframe.

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Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report

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

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