International Markets and NETGEAR (NTGR): A Deep Dive for Investors

Did you analyze how NETGEAR, Inc. (NTGR) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.Upon examining NTGR'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 company's total revenue for the quarter amounted to $182.42 million, marking a decrease of 3.3% from the year-ago quarter. We will next turn our attention to dissecting NTGR's international revenue to get a clearer picture of how significant its operations are outside its main base. A Closer Look at NTGR's Revenue Streams AbroadAPAC accounted for 12.96% of the company's total revenue during the quarter, translating to $23.64 million. Revenues from this region represented a surprise of +2.97%, with Wall Street analysts collectively expecting $22.96 million. When compared to the preceding quarter and the same quarter in the previous year, APAC contributed $22.3 million (12.20%) and $25.98 million (13.77%) to the total revenue, respectively.Of the total revenue, $35.92 million came from EMEA during the last fiscal quarter, accounting for 19.69%. This represented a surprise of +12.96% as analysts had expected the region to contribute $31.8 million to the total revenue. In comparison, the region contributed $32.8 million, or 17.94%, and $37.9 million, or 20.09%, to total revenue in the previous and year-ago quarters, respectively.International Market Revenue Projections It is projected by analysts on Wall Street that NETGEAR will post revenues of $152.24 million for the ongoing fiscal quarter, a decline of 7.5% from the year-ago quarter. The expected contributions from APAC and EMEA to this revenue are 14.8% and 20.3%, translating into $22.59 million and $30.87 million, respectively.For the full year, the company is projected to achieve a total revenue of $685.61 million, which signifies a rise of 1.8% from the last year. The share of this revenue from various regions is expected to be: APAC at 13.6% ($93.38 million) and EMEA at 18.8% ($128.96 million). The Bottom Line Relying on international markets for revenues, NETGEAR 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 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.Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.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.Currently, NETGEAR holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> A Look at NETGEAR's Recent Stock Price Performance The stock has witnessed an increase of 17% over the past month versus the Zacks S&P 500 composite's an increase of 4.2%. In the same interval, the Zacks Computer and Technology sector, to which NETGEAR belongs, has registered an increase of 2.3%. Over the past three months, the company's shares saw an increase of 24.1%, while the S&P 500 increased by 1.5%. In comparison, the sector experienced an increase of 2.3% during this timeframe.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 NETGEAR, Inc. (NTGR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks