Investing in Marvell (MRVL)? Don't Miss Assessing Its International Revenue Trends

Have you looked into how Marvell Technology (MRVL) performed internationally during the quarter ending October 2024? Considering the widespread global presence of this chipmaker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.While analyzing MRVL's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.The company's total revenue for the quarter amounted to $1.52 billion, showing rise of 6.9%. We will now explore the breakdown of MRVL's overseas revenue to assess the impact of its international operations. Trends in MRVL's Revenue from International MarketsThailand accounted for 4.83% of the company's total revenue during the quarter, translating to $73.3 million. Revenues from this region represented a surprise of -27.02%, with Wall Street analysts collectively expecting $100.44 million. When compared to the preceding quarter and the same quarter in the previous year, Thailand contributed $95 million (7.46%) and $94.5 million (6.66%) to the total revenue, respectively.During the quarter, Japan contributed $55.8 million in revenue, making up 3.68% of the total revenue. When compared to the consensus estimate of $35.62 million, this meant a surprise of +56.65%. Looking back, Japan contributed $33.2 million, or 2.61%, in the previous quarter, and $37.5 million, or 2.64%, in the same quarter of the previous year.China generated $658.4 million in revenues for the company in the last quarter, constituting 43.43% of the total. This represented a surprise of -0.41% compared to the $661.09 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $586.8 million (46.10%), and in the year-ago quarter, it contributed $605.3 million (42.67%) to the total revenue.Of the total revenue, $46.1 million came from Singapore during the last fiscal quarter, accounting for 3.04%. This represented a surprise of -59.7% as analysts had expected the region to contribute $114.4 million to the total revenue. In comparison, the region contributed $142.2 million, or 11.17%, and $73.5 million, or 5.18%, to total revenue in the previous and year-ago quarters, respectively.Of the total revenue, $40.3 million came from Malaysia during the last fiscal quarter, accounting for 2.66%. This represented a surprise of -13.39% as analysts had expected the region to contribute $46.53 million to the total revenue. In comparison, the region contributed $29.4 million, or 2.31%, and $31.6 million, or 2.23%, to total revenue in the previous and year-ago quarters, respectively.During the quarter, Taiwan contributed $198.5 million in revenue, making up 13.09% of the total revenue. When compared to the consensus estimate of $36.8 million, this meant a surprise of +439.4%. Looking back, Taiwan contributed $38.5 million, or 3.02%, in the previous quarter, and $22.9 million, or 1.61%, in the same quarter of the previous year. Prospective Revenues in International Markets It is projected by analysts on Wall Street that Marvell will post revenues of $1.8 billion for the ongoing fiscal quarter, an increase of 26.4% from the year-ago quarter. The expected contributions from Thailand, Japan, China, Singapore, Malaysia and Taiwan to this revenue are 5.9%, 2.1%, 39.4%, 7.3%, 2.9% and 2.4%, translating into $107.21 million, $36.95 million, $710.2 million, $131.35 million, $52.97 million and $42.46 million, respectively.For the entire year, the company's total revenue is forecasted to be $5.7 billion, which is an improvement of 3.5% from the previous year. The revenue contributions from different regions are expected as follows: Thailand will contribute 6.5% ($367.64 million), Japan 2.2% ($123.07 million), China 43.7% ($2.49 billion), Singapore 8.8% ($499.25 million), Malaysia 3.2% ($181.9 million) and Taiwan 2.8% ($160.36 million) to the total revenue. Wrapping Up Relying on international markets for revenues, Marvell faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings 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.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 present, Marvell holds a Zacks Rank #1 (Strong Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Reviewing Marvell's Recent Stock Price Trends Over the past month, the stock has gained 21% versus the Zacks S&P 500 composite's 2.9% increase. The Zacks Computer and Technology sector, of which Marvell is a part, has risen 3.4% over the same period. The company's shares have increased 52.4% over the past three months compared to the S&P 500's 12.8% increase. 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