Have you evaluated the performance of Advanced Energy Industries' (AEIS - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of power-conversion products, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into AEIS' 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 company's total revenue for the quarter amounted to $364.95 million, showing decrease of 12.2%. We will now explore the breakdown of AEIS' overseas revenue to assess the impact of its international operations.
Decoding AEIS' International Revenue Trends
During the quarter, Europe contributed $39.81 million in revenue, making up 10.9% of the total revenue. When compared to the consensus estimate of $43.57 million, this meant a surprise of -8.62%. Looking back, Europe contributed $40.55 million, or 12.4%, in the previous quarter, and $56.21 million, or 13.5%, in the same quarter of the previous year.
Asia accounted for 41.6% of the company's total revenue during the quarter, translating to $151.96 million. Revenues from this region represented a surprise of +1.01%, with Wall Street analysts collectively expecting $150.43 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $151.94 million (46.4%) and $186.5 million (44.9%) to the total revenue, respectively.
Other countries generated $0.39 million in revenues for the company in the last quarter, constituting 0.1% of the total. This represented a surprise of -84.29% compared to the $2.45 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other countries accounted for $0.9 million (0.3%), and in the year-ago quarter, it contributed $1.28 million (0.3%) to the total revenue.
International Market Revenue Projections
Wall Street analysts expect Advanced Energy to report a total revenue of $379.9 million in the current fiscal quarter, which suggests a decline of 7.3% from the prior-year quarter. Revenue shares from Europe, Asia and Other countries are predicted to be 12.3%, 45.1% and 0.3%, corresponding to amounts of $46.59 million, $171.46 million and $0.96 million, respectively.
Analysts expect the company to report a total annual revenue of $1.47 billion for the full year, marking a decrease of 11% compared to last year. The expected revenue contributions from Europe, Asia and Other countries are projected to be 12.2% ($180.34 million), 43.6% ($642.32 million) and 0.4% ($5.47 million) of the total revenue, in that order.
Key Takeaways
Advanced Energy's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
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.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock 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.
At present, Advanced Energy holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Advanced Energy's Recent Stock Price Performance
The stock has declined by 10% over the past month compared to the 6.7% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Advanced Energy, has decreased 13.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 4.1% relative to the S&P 500's 1.6% increase. Throughout this period, the sector overall has witnessed a 0.3% increase.
Have you evaluated the performance of Advanced Energy Industries' (AEIS - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of power-conversion products, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into AEIS' 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 company's total revenue for the quarter amounted to $364.95 million, showing decrease of 12.2%. We will now explore the breakdown of AEIS' overseas revenue to assess the impact of its international operations.
Decoding AEIS' International Revenue Trends
During the quarter, Europe contributed $39.81 million in revenue, making up 10.9% of the total revenue. When compared to the consensus estimate of $43.57 million, this meant a surprise of -8.62%. Looking back, Europe contributed $40.55 million, or 12.4%, in the previous quarter, and $56.21 million, or 13.5%, in the same quarter of the previous year.
Asia accounted for 41.6% of the company's total revenue during the quarter, translating to $151.96 million. Revenues from this region represented a surprise of +1.01%, with Wall Street analysts collectively expecting $150.43 million. When compared to the preceding quarter and the same quarter in the previous year, Asia contributed $151.94 million (46.4%) and $186.5 million (44.9%) to the total revenue, respectively.
Other countries generated $0.39 million in revenues for the company in the last quarter, constituting 0.1% of the total. This represented a surprise of -84.29% compared to the $2.45 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other countries accounted for $0.9 million (0.3%), and in the year-ago quarter, it contributed $1.28 million (0.3%) to the total revenue.
International Market Revenue Projections
Wall Street analysts expect Advanced Energy to report a total revenue of $379.9 million in the current fiscal quarter, which suggests a decline of 7.3% from the prior-year quarter. Revenue shares from Europe, Asia and Other countries are predicted to be 12.3%, 45.1% and 0.3%, corresponding to amounts of $46.59 million, $171.46 million and $0.96 million, respectively.Analysts expect the company to report a total annual revenue of $1.47 billion for the full year, marking a decrease of 11% compared to last year. The expected revenue contributions from Europe, Asia and Other countries are projected to be 12.2% ($180.34 million), 43.6% ($642.32 million) and 0.4% ($5.47 million) of the total revenue, in that order.
Key Takeaways
Advanced Energy's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.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.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock 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.
At present, Advanced Energy holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Advanced Energy's Recent Stock Price Performance
The stock has declined by 10% over the past month compared to the 6.7% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Advanced Energy, has decreased 13.9% during this time frame. Over the past three months, the company's shares have experienced a loss of 4.1% relative to the S&P 500's 1.6% increase. Throughout this period, the sector overall has witnessed a 0.3% increase.Get the latest research report on AEIS - FREE