AMETEK, Inc. stock research
FY2023 Q1
AMETEK (AME) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was stable compared to the prior quarter, while cost of revenue was lower, resulting in higher gross profit and an improved gross margin. Versus the same quarter a year ago, revenue was higher and cost of revenue increased less than proportionally, leading to a higher gross profit and a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter, while cost of revenue was lower, resulting in higher gross profit and an improved gross margin. Versus the same quarter a year ago, revenue was higher and cost of revenue increased less than proportionally, leading to a higher gross profit and a stronger gross margin.
- The reduction in cost of revenue relative to revenue was the most observable driver of the gross margin improvement, as it enabled gross profit to increase even with stable revenue.
- Gross margin improved both sequentially and year-over-year, supported by a lower cost of revenue in the current quarter compared to the preceding quarter and a more favorable relationship between revenue and cost of revenue compared to the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$574.6M
Revenue
$1.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
Year-over-year change
+1.0 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 | $1.6B | $574.6M | $1.0B | 36.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue relative to revenue was the most observable driver of the gross margin improvement, as it enabled gross profit to increase even with stable revenue.
Gross margin improved both sequentially and year-over-year, supported by a lower cost of revenue in the current quarter compared to the preceding quarter and a more favorable relationship between revenue and cost of revenue compared to the year-ago quarter.
Monitor the trajectory of cost of revenue in upcoming quarters to assess whether the margin improvement can be sustained.