AM

AMETEK, Inc. stock research

Sep 30, 2023

FY2023 Q3

AMETEK (AME) Gross Margin — Quarter Ended Sep 30, 2023

Revenue remained stable while gross profit increased, leading to an improvement in gross margin. Cost of revenue decreased slightly, contributing to the higher gross profit.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue remained stable while gross profit increased, leading to an improvement in gross margin. Cost of revenue decreased slightly, contributing to the higher gross profit.

  • The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a higher gross profit relative to revenue.
  • Compared to the prior quarter, gross margin was higher, with gross profit increasing while revenue was stable. Versus the same quarter last year, gross margin also improved, as gross profit rose more than revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

37.1%

Gross profit

$601.9M

Revenue

$1.6B

Cost of revenue

$1.0B

Quarter-over-quarter change

+1.1 pts

Year-over-year change

+1.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.6B$574.6M$1.0B36.0%
Jun 30, 2023$1.6B$592.9M$1.1B36.0%
Sep 30, 2023$1.6B$601.9M$1.0B37.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+1.1 pts

Year-over-year change

Sep 30, 2022

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a higher gross profit relative to revenue.

Compared to the prior quarter, gross margin was higher, with gross profit increasing while revenue was stable. Versus the same quarter last year, gross margin also improved, as gross profit rose more than revenue.

Monitor the trend in cost of revenue, as its reduction contributed to the margin improvement.