AMETEK, Inc. stock research
FY2024 Q4
AMETEK (AME) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened sequentially but improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened sequentially but improved relative to the year-ago period.
- The strongest observable driver is the increase in gross profit, which grew faster than cost of revenue on a year-over-year basis, supporting margin expansion. Sequentially, cost of revenue rose more than gross profit, leading to margin compression.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.5%
Gross profit
$615.0M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
-1.6 pts
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% |
| Jun 30, 2023 | $1.6B | $592.9M | $1.1B | 36.0% |
| Sep 30, 2023 | $1.6B | $601.9M | $1.0B | 37.1% |
| Dec 31, 2023 | $1.7B | $615.0M | $1.1B | 35.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.6 pts
Year-over-year change
Dec 31, 2022
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the increase in gross profit, which grew faster than cost of revenue on a year-over-year basis, supporting margin expansion. Sequentially, cost of revenue rose more than gross profit, leading to margin compression.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and compressed margin.