Have you evaluated the performance of Agilent Technologies' (A) international operations during the quarter that concluded in January 2025? Considering the extensive worldwide presence of this scientific instrument maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

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.

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 analyzing A'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 $1.68 billion, showing rise of 1.4%. We will now explore the breakdown of A's overseas revenue to assess the impact of its international operations.

Decoding A's International Revenue Trends

During the quarter, Asia Pacific contributed $549 million in revenue, making up 32.66% of the total revenue. When compared to the consensus estimate of $579.48 million, this meant a surprise of -5.26%. Looking back, Asia Pacific contributed $567 million, or 33.33%, in the previous quarter, and $570 million, or 34.38%, in the same quarter of the previous year.

Europe generated $463 million in revenues for the company in the last quarter, constituting 27.54% of the total. This represented a surprise of +3.47% compared to the $447.46 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $454 million (26.69%), and in the year-ago quarter, it contributed $458 million (27.62%) to the total revenue.

Prospective Revenues in International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Agilent will report a total revenue of $1.63 billion, which reflects an increase of 3.5% from the same quarter in the previous year. The revenue contributions are expected to be 33.9% from Asia Pacific ($552.14 million) and 26.5% from Europe ($431.94 million).

For the full year, the company is projected to achieve a total revenue of $6.75 billion, which signifies a rise of 3.7% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 34.8% ($2.35 billion) and Europe at 26.1% ($1.76 billion).

The Bottom Line

Relying on global markets for revenues presents both prospects and challenges for Agilent. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

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.

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 the moment, Agilent has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Agilent's Recent Stock Price Performance

The stock has declined by 15.6% over the past month compared to the 1.3% fall of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes Agilent, has increased 1.1% during this time frame. Over the past three months, the company's shares have experienced a loss of 9% relative to the S&P 500's 1% decline. Throughout this period, the sector overall has witnessed a 1.6% decrease.

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This article originally published on Zacks Investment Research (zacks.com).

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