Allegion plc stock research
FY2024 Q2
Allegion (ALLE) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter and was higher than the year-ago period, driven by a proportionally smaller increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter and was higher than the year-ago period, driven by a proportionally smaller increase in cost of revenue relative to revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.4%
Gross profit
$428.3M
Revenue
$965.6M
Cost of revenue
$537.3M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $917.9M | $403.3M | $514.6M | 43.9% |
| Dec 31, 2023 | $897.4M | $385.3M | $512.1M | 42.9% |
| Mar 31, 2024 | $893.9M | $391.4M | $502.5M | 43.8% |
| Jun 30, 2024 | $965.6M | $428.3M | $537.3M | 44.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin direction.