Have you evaluated the performance of Dentsply International's (XRAY) international operations for the quarter ending December 2024? Given the extensive global presence of this dental products manufacturer, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

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.

Upon examining XRAY'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.

The recent quarter saw the company's total revenue reaching $905 million, marking a decline of 10.6% from the prior-year quarter. Next, we'll examine the breakdown of XRAY's revenue from abroad to comprehend the significance of its international presence.

Trends in XRAY's Revenue from International Markets

Of the total revenue, $408 million came from Europe during the last fiscal quarter, accounting for 45.08%. This represented a surprise of +10.82% as analysts had expected the region to contribute $368.16 million to the total revenue. In comparison, the region contributed $347 million, or 36.49%, and $397 million, or 39.23%, to total revenue in the previous and year-ago quarters, respectively.

Rest of World generated $238 million in revenues for the company in the last quarter, constituting 26.30% of the total. This represented a surprise of +15.88% compared to the $205.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of World accounted for $230 million (24.19%), and in the year-ago quarter, it contributed $247 million (24.41%) to the total revenue.

International Revenue Predictions

Wall Street analysts expect Dentsply to report $876.89 million in total revenue for the current fiscal quarter, indicating a decline of 8% from the year-ago quarter. Europe and Rest of World are expected to contribute 42.1% ($368.75 million) and 22.5% ($197.17 million) to the total revenue, respectively.

For the full year, a total revenue of $3.56 billion is expected for the company, reflecting a decline of 6.2% from the year before. The revenues from Europe and Rest of World are expected to make up 41.3% and 23% of this total, corresponding to $1.47 billion and $817.9 million respectively.

In Conclusion

Dentsply's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

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.

At the moment, Dentsply 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 >>>>

Exploring Recent Trends in Dentsply's Stock Price

Over the preceding four weeks, the stock's value has diminished by 16.3%, against a downturn of 1.3% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Dentsply among its entities, has appreciated by 1.1%. Over the past three months, the company's shares have seen a decline of 13.3% versus the S&P 500's 1% decline. The sector overall has witnessed a decline of 1.6% over the same period.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report

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

Zacks Investment Research