Have you assessed how the international operations of Watts Water (WTS) performed in the quarter ended March 2025? For this maker of valves for plumbing, heating and water needs, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

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.

Upon examining WTS' 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 $558 million, marking a decline of 2.3% from the prior-year quarter. Next, we'll examine the breakdown of WTS' revenue from abroad to comprehend the significance of its international presence.

A Dive into WTS' International Revenue Trends

Europe accounted for 19.43% of the company's total revenue during the quarter, translating to $108.4 million. Revenues from this region represented a surprise of +0.6%, with Wall Street analysts collectively expecting $107.75 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $108.6 million (20.10%) and $123.3 million (21.60%) to the total revenue, respectively.

During the quarter, APMEA contributed $31.5 million in revenue, making up 5.65% of the total revenue. When compared to the consensus estimate of $28.3 million, this meant a surprise of +11.31%. Looking back, APMEA contributed $33.8 million, or 6.25%, in the previous quarter, and $28.8 million, or 5.04%, in the same quarter of the previous year.

Prospective Revenues in International Markets

Wall Street analysts expect Watts Water to report a total revenue of $606.56 million in the current fiscal quarter, which suggests an increase of 1.6% from the prior-year quarter. Revenue shares from Europe and APMEA are predicted to be 17.8% and 5.6%, corresponding to amounts of $107.8 million and $34.17 million, respectively.