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 Abroad

Of 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.