Did you analyze how Terex (TEX) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this machinery products maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

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 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.

Upon examining TEX's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The recent quarter saw the company's total revenue reaching $1.24 billion, marking an improvement of 1.5% from the prior-year quarter. Next, we'll examine the breakdown of TEX's revenue from abroad to comprehend the significance of its international presence.

A Look into TEX's International Revenue Streams

During the quarter, Western Europe contributed $157 million in revenue, making up 12.65% of the total revenue. When compared to the consensus estimate of $231.54 million, this meant a surprise of -32.19%. Looking back, Western Europe contributed $191 million, or 15.76%, in the previous quarter, and $219.2 million, or 17.93%, in the same quarter of the previous year.

Asia-Pacific generated $137 million in revenues for the company in the last quarter, constituting 11.04% of the total. This represented a surprise of -18.2% compared to the $167.48 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $130 million (10.73%), and in the year-ago quarter, it contributed $178.9 million (14.63%) to the total revenue.

International Market Revenue Projections

The current fiscal quarter's total revenue for Terex, as projected by Wall Street analysts, is expected to reach $1.36 billion, reflecting an increase of 5.1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Western Europe is anticipated to contribute 18.9% or $257.14 million and Asia-Pacific 11.3% or $153.7 million.

For the full year, a total revenue of $5.39 billion is expected for the company, reflecting an increase of 5.1% from the year before. The revenues from Western Europe and Asia-Pacific are expected to make up 18.3% and 11.6% of this total, corresponding to $987.49 million and $623.95 million respectively.

Closing Remarks

Relying on international markets for revenues, Terex faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these 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.

Currently, Terex holds a Zacks Rank #5 (Strong Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Terex's Recent Stock Price Trends

Over the preceding four weeks, the stock's value has appreciated by 1.7%, against an upturn of 2.1% in the Zacks S&P 500 composite. In parallel, the Zacks Industrial Products sector, which counts Terex among its entities, has appreciated by 1.5%. Over the past three months, the company's shares have seen a decline of 13.9% versus the S&P 500's 1.2% increase. The sector overall has witnessed a decline of 6.5% over the same period.

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

Terex Corporation (TEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research