Unlocking Estee Lauder (EL) International Revenues: Trends, Surprises, and Prospects

Did you analyze how Estee Lauder (EL) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this beauty products company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.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.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 delving into EL's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.The recent quarter saw the company's total revenue reaching $3.36 billion, marking a decline of 4.5% from the prior-year quarter. Next, we'll examine the breakdown of EL's revenue from abroad to comprehend the significance of its international presence. A Closer Look at EL's Revenue Streams AbroadOf the total revenue, $944 million came from Asia/Pacific during the last fiscal quarter, accounting for 28.09%. This represented a surprise of -3.01% as analysts had expected the region to contribute $973.3 million to the total revenue. In comparison, the region contributed $1.21 billion, or 31.13%, and $1.06 billion, or 30.07%, to total revenue in the previous and year-ago quarters, respectively.Europe the Middle East & Africa accounted for 36.60% of the company's total revenue during the quarter, translating to $1.23 billion. Revenues from this region represented a surprise of -2.55%, with Wall Street analysts collectively expecting $1.26 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe the Middle East & Africa contributed $1.65 billion (42.68%) and $1.25 billion (35.59%) to the total revenue, respectively. Revenue Forecasts for the International Markets The current fiscal quarter's total revenue for Estee Lauder, as projected by Wall Street analysts, is expected to reach $3.99 billion, reflecting a decline of 6.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia/Pacific is anticipated to contribute 35.2% or $1.41 billion and Europe the Middle East & Africa 42% or $1.68 billion.Analysts expect the company to report a total annual revenue of $14.97 billion for the full year, marking a decrease of 4.1% compared to last year. The expected revenue contributions from Asia/Pacific and Europe the Middle East & Africa are projected to be 32.4% ($4.84 billion) and 42.3% ($6.33 billion) of the total revenue, in that order. Final Thoughts The dependency of Estee Lauder on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.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.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 tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.At the moment, Estee Lauder has a Zacks Rank #5 (Strong Sell), signifying that it may underperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Reviewing Estee Lauder's Recent Stock Price Trends The stock has declined by 29.9% over the past month compared to the 0.7% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Consumer Staples sector, which includes Estee Lauder, has decreased 0.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 28.4% relative to the S&P 500's 11.8% increase. Throughout this period, the sector overall has witnessed a 1.6% increase.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 The Estee Lauder Companies Inc. (EL): 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