Unlocking HP (HPQ) International Revenues: Trends, Surprises, and Prospects

Have you looked into how HP (HPQ) performed internationally during the quarter ending January 2025? Considering the widespread global presence of this personal computer and printer maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.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.Our review of HPQ's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.The company's total revenue for the quarter amounted to $13.5 billion, showing rise of 2.4%. We will now explore the breakdown of HPQ's overseas revenue to assess the impact of its international operations. Trends in HPQ's Revenue from International MarketsDuring the quarter, Europe, Middle East and Africa contributed $4.75 billion in revenue, making up 35.20% of the total revenue. When compared to the consensus estimate of $4.36 billion, this meant a surprise of +9.02%. Looking back, Europe, Middle East and Africa contributed $4.58 billion, or 32.61%, in the previous quarter, and $4.67 billion, or 35.40%, in the same quarter of the previous year.Asia-Pacific and Japan accounted for 23.93% of the company's total revenue during the quarter, translating to $3.23 billion. Revenues from this region represented a surprise of +0.61%, with Wall Street analysts collectively expecting $3.21 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific and Japan contributed $3.31 billion (23.52%) and $3.11 billion (23.58%) to the total revenue, respectively. Revenue Forecasts for the International Markets The current fiscal quarter's total revenue for HP, as projected by Wall Street analysts, is expected to reach $13.08 billion, reflecting an increase of 2.2% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe, Middle East and Africa is anticipated to contribute 32.3% or $4.22 billion and Asia-Pacific and Japan 23.8% or $3.11 billion.For the entire year, the company's total revenue is forecasted to be $55.09 billion, which is an improvement of 2.9% from the previous year. The revenue contributions from different regions are expected as follows: Europe, Middle East and Africa will contribute 32.3% ($17.77 billion) and Asia-Pacific and Japan 23.8% ($13.09 billion) to the total revenue. Final Thoughts Relying on global markets for revenues presents both prospects and challenges for HP. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.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.Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.At the moment, HP has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Assessing HP's Stock Price Movement in Recent Times The stock has declined by 5% over the past month compared to the 1.3% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes HP, has decreased 4.6% during this time frame. Over the past three months, the company's shares have experienced a loss of 14.7% relative to the S&P 500's 1% decline. 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