International Markets and Gen Digital (GEN): A Deep Dive for Investors

Did you analyze how Gen Digital (GEN) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this security software maker, 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.In our recent assessment of GEN's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.The recent quarter saw the company's total revenue reaching $975 million, marking an improvement of 2.1% from the prior-year quarter. Next, we'll examine the breakdown of GEN's revenue from abroad to comprehend the significance of its international presence. Unveiling Trends in GEN's International RevenuesDuring the quarter, EMEA contributed $233 million in revenue, making up 23.90% of the total revenue. When compared to the consensus estimate of $233.56 million, this meant a surprise of -0.24%. Looking back, EMEA contributed $233 million, or 24.15%, in the previous quarter, and $237 million, or 24.82%, in the same quarter of the previous year.APJ generated $100 million in revenues for the company in the last quarter, constituting 10.26% of the total. This represented a surprise of +0.53% compared to the $99.47 million projected by Wall Street analysts. Comparatively, in the previous quarter, APJ accounted for $96 million (9.95%), and in the year-ago quarter, it contributed $95 million (9.95%) to the total revenue. International Revenue Predictions Wall Street analysts expect Gen Digital to report $986.22 million in total revenue for the current fiscal quarter, indicating an increase of 3.5% from the year-ago quarter. EMEA and APJ are expected to contribute 23.8% ($234.54 million) and 10% ($99.03 million) to the total revenue, respectively.For the full year, the company is projected to achieve a total revenue of $3.9 billion, which signifies a rise of 2.2% from the last year. The share of this revenue from various regions is expected to be: EMEA at 24.2% ($943.07 million) and APJ at 10.2% ($396.17 million). Final Thoughts Relying on international markets for revenues, Gen Digital faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.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.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.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.Gen Digital, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> A Look at Gen Digital's Recent Stock Price Performance Over the preceding four weeks, the stock's value has appreciated by 4.1%, against an upturn of 0.7% in the Zacks S&P 500 composite. In parallel, the Zacks Business Services sector, which counts Gen Digital among its entities, has appreciated by 5.2%. Over the past three months, the company's shares have seen an increase of 14.7% versus the S&P 500's 11.8% increase. The sector overall has witnessed an increase of 17.8% over the same period.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Gen Digital Inc. 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