Allegion plc stock research
FY2023 Q1
Allegion (ALLE) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace, leading to an improved gross margin, as cost of revenue increased less proportionally.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace, leading to an improved gross margin, as cost of revenue increased less proportionally.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth, where revenue increased more than cost of revenue, enabling gross profit to expand and margin to improve.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.4%
Gross profit
$391.0M
Revenue
$923.0M
Cost of revenue
$532.0M
Quarter-over-quarter change
n/a
Year-over-year change
+2.5 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 | $923.0M | $391.0M | $532.0M | 42.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth, where revenue increased more than cost of revenue, enabling gross profit to expand and margin to improve.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Monitor the trend of cost of revenue relative to revenue to assess whether the current margin improvement can be sustained.