Allegion plc stock research
FY2023 Q3
Allegion (ALLE) Gross Margin — Quarter Ended Sep 30, 2023
During the current quarter, revenue and cost of revenue both increased slightly compared to the prior quarter, resulting in a marginal decline in gross margin. However, compared to the same quarter a year ago, cost of revenue decreased while revenue remained stable, leading to significant improvements in gross profit and gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
During the current quarter, revenue and cost of revenue both increased slightly compared to the prior quarter, resulting in a marginal decline in gross margin. However, compared to the same quarter a year ago, cost of revenue decreased while revenue remained stable, leading to significant improvements in gross profit and gross margin.
- The primary observable margin driver is the reduction in cost of revenue relative to the year-ago quarter, which expanded gross profit and gross margin despite stable revenue.
- Gross margin weakened slightly from the prior quarter but improved substantially from the same quarter one year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.9%
Gross profit
$403.3M
Revenue
$917.9M
Cost of revenue
$514.6M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+3.7 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% |
| Sep 30, 2023 | $917.9M | $403.3M | $514.6M | 43.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.1 pts
Year-over-year change
Sep 30, 2022
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is the reduction in cost of revenue relative to the year-ago quarter, which expanded gross profit and gross margin despite stable revenue.
Gross margin weakened slightly from the prior quarter but improved substantially from the same quarter one year ago.
Monitor the sequential increase in cost of revenue against revenue growth in future quarters.