Abbott Laboratories stock research
FY2024 Q1
Abbott Laboratories (ABT) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and cost of revenue all decreased compared to the immediately preceding quarter, while gross margin slightly weakened. Compared to the same quarter one year earlier, revenue and gross profit increased, but cost of revenue grew more, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and cost of revenue all decreased compared to the immediately preceding quarter, while gross margin slightly weakened. Compared to the same quarter one year earlier, revenue and gross profit increased, but cost of revenue grew more, resulting in a slightly lower gross margin.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. The gross margin declined slightly from both the prior quarter and the year-ago quarter, indicating that cost of revenue grew at a faster pace than revenue on a comparative basis.
- The gross margin in the current quarter is lower than both the immediately preceding quarter and the same quarter one year earlier. The decline is modest and consistent across both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.2%
Gross profit
$5.5B
Revenue
$10.0B
Cost of revenue
$4.5B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $10.0B | $5.5B | $4.5B | 55.1% |
| Sep 30, 2023 | $10.1B | $5.5B | $4.6B | 54.6% |
| Dec 31, 2023 | $10.2B | $5.7B | $4.6B | 55.5% |
| Mar 31, 2024 | $10.0B | $5.5B | $4.5B | 55.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.3 pts
Year-over-year change
Mar 31, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. The gross margin declined slightly from both the prior quarter and the year-ago quarter, indicating that cost of revenue grew at a faster pace than revenue on a comparative basis.
The gross margin in the current quarter is lower than both the immediately preceding quarter and the same quarter one year earlier. The decline is modest and consistent across both comparisons.
Monitor the trend in cost of revenue growth relative to revenue growth in upcoming quarters.