Abbott Laboratories stock research
FY2023 Q2
Abbott Laboratories (ABT) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased from the prior quarter but decreased from the same quarter a year earlier. Gross margin weakened compared with both periods, as cost of revenue rose more than revenue sequentially and declined less than revenue year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased from the prior quarter but decreased from the same quarter a year earlier. Gross margin weakened compared with both periods, as cost of revenue rose more than revenue sequentially and declined less than revenue year-over-year.
- The most notable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased while revenue also increased, but the margin contracted. Year-over-year, cost of revenue decreased less than revenue, compressing the margin.
- Compared with the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared with the same quarter a year earlier, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.1%
Gross profit
$5.5B
Revenue
$10.0B
Cost of revenue
$4.5B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $9.7B | $5.4B | $4.3B | 55.6% |
| Jun 30, 2023 | $10.0B | $5.5B | $4.5B | 55.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.5 pts
Year-over-year change
Jun 30, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue increased while revenue also increased, but the margin contracted. Year-over-year, cost of revenue decreased less than revenue, compressing the margin.
Compared with the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared with the same quarter a year earlier, revenue, gross profit, and gross margin were all lower.
The filing notes an increase in inventory, a component that can influence cost of revenue and is worth monitoring for its effect on future gross margin.