Allegion plc stock research
FY2024 Q3
Allegion (ALLE) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost management.
- The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, supported by revenue growth outpacing cost of revenue changes.
- Compared to the immediately preceding quarter, revenue was slightly higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.7%
Gross profit
$432.1M
Revenue
$967.1M
Cost of revenue
$535.0M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $967.1M | $432.1M | $535.0M | 44.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.3 pts
Year-over-year change
Sep 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, supported by revenue growth outpacing cost of revenue changes.
Compared to the immediately preceding quarter, revenue was slightly higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline from the prior quarter contributed to margin improvement.