Allegion plc stock research
FY2023 Q4
Allegion (ALLE) Gross Margin — Quarter Ended Dec 31, 2023
In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined slightly. Gross margin weakened sequentially but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined slightly. Gross margin weakened sequentially but improved compared to the same quarter last year.
- The year-over-year improvement in gross margin was driven by gross profit growing faster than revenue, while cost of revenue remained relatively stable. Sequentially, the decline in gross margin resulted from a larger proportional decrease in gross profit relative to revenue.
- Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.9%
Gross profit
$385.3M
Revenue
$897.4M
Cost of revenue
$512.1M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+2.2 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% |
| Dec 31, 2023 | $897.4M | $385.3M | $512.1M | 42.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.0 pts
Year-over-year change
Dec 31, 2022
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by gross profit growing faster than revenue, while cost of revenue remained relatively stable. Sequentially, the decline in gross margin resulted from a larger proportional decrease in gross profit relative to revenue.
Compared to the previous quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the relationship between revenue and cost of revenue changes, as it directly influences gross margin trends.