In today's world, most companies span several regions and sell across the world. As Foolish colleague Morgan Housel notes, 10 years ago, less than a third of S&P 500 revenue came from outside the United States. Today, more than half of the S&P 500's growth comes from overseas. And that number is growing.
The truth is, investors regularly underestimate how much demand comes from abroad. More importantly, for large, multinational corporations that have already established a presence in their home markets, much of their future growth comes from foreign markets.
With that in mind, today we're looking at French telecom equipment provider Alcatel-Lucent
Where Alcatel-Lucent's sales were five years ago
Five years ago time, Alcatel Lucent reported 44% of sales to Europe. Its second largest market was Asia at 16% of sales, with the United States coming in third at 14%.
Source: Capital IQ, a division of Standard & Poor's.
Where Alcatel Lucent's sales are today
Today, Alcatel-Lucent has seen sales shift away from Europe and toward the United States. As of 2010, the United States now contributes 33% of company sales, ahead of Europe's combined 32% of sales.
Source: Capital IQ, a division of Standard & Poor's.
Here's a look at absolute sales growth in each segment.
Region |
5-Year Total Sales Growth |
---|---|
France |
16% |
Other Western Europe |
29% |
Rest of Europe |
(18%) |
Asia Pacific |
86% |
United States of America |
281% |
Other Americas |
63% |
Rest of World |
(25%) |
Source: Capital IQ, a division of Standard & Poor's.
The best part for Alcatel-Lucent investors is that the company's momentum in the United States is still going strong. Last June, the company stunned rival Tellabs
Along with its impressive win at AT&T, Alcatel-Lucent notched a major victory when Verizon's
Competitor checkup
One last point to check is how Alcatel-Lucent's footprint compares with some of its peers across the broader networking and telecom equipment space.
Company |
Geography With Most Sales |
Percent of Sales |
---|---|---|
Alcatel-Lucent | United States | 33% |
Cisco | United States and Canada | 54% |
Ericsson | Europe* | 27% |
Juniper | United States | 46% |
Source: Capital IQ, a division of Standard & Poor's.
*Northern Europe and Central Asia, Western and Central Europe, and Mediterranean unit totals combined.
Keep searching
If you're looking to stay updated on Alcatel-Lucent, or any other companies mentioned here, make sure to add them to our free watchlist service, My Watchlist. It's free, and it helps you constantly stay updated with the news and analysis on your favorite companies.
- Add Alcatel-Lucent to My Watchlist.
- Add Cisco to My Watchlist.
- Add Juniper to My Watchlist.
- Add Tellabs to My Watchlist.