Allegion plc stock research
FY2023 Q2
Allegion (ALLE) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit rose both sequentially and year-over-year, while cost of revenue fell sequentially but rose year-over-year, resulting in an improved gross margin relative to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year. Gross profit rose both sequentially and year-over-year, while cost of revenue fell sequentially but rose year-over-year, resulting in an improved gross margin relative to both periods.
- The gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to revenue and a decline in cost of revenue from the prior quarter.
- Compared to the prior quarter, revenue was slightly lower while gross profit was higher and cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more than revenue, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.0%
Gross profit
$401.9M
Revenue
$912.5M
Cost of revenue
$510.6M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+3.3 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% |
| Jun 30, 2023 | $912.5M | $401.9M | $510.6M | 44.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.7 pts
Year-over-year change
Jun 30, 2022
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to revenue and a decline in cost of revenue from the prior quarter.
Compared to the prior quarter, revenue was slightly lower while gross profit was higher and cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more than revenue, resulting in a higher gross margin.
Monitor the trend in cost of revenue, which decreased sequentially but increased year-over-year, as changes in this metric directly affect gross margin.