AMETEK, Inc. stock research
FY2024 Q1
AMETEK (AME) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was essentially stable versus the prior quarter and higher versus the year-ago quarter. Gross profit and gross margin weakened sequentially and declined compared with the same quarter last year, driven by a proportionally larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was essentially stable versus the prior quarter and higher versus the year-ago quarter. Gross profit and gross margin weakened sequentially and declined compared with the same quarter last year, driven by a proportionally larger increase in cost of revenue relative to revenue.
- The current gross margin weakened sequentially and year-over-year, with cost of revenue growing faster than revenue in both comparisons. This relationship indicates that cost pressures were the strongest observable driver of margin compression.
- Compared with the immediately preceding quarter, revenue was essentially unchanged while gross profit and gross margin both decreased. Versus the same quarter one year earlier, revenue was higher but gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$591.5M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
-1.5 pts
Year-over-year change
-1.9 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.7B | $591.5M | $1.1B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.5 pts
Year-over-year change
Mar 31, 2023
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The current gross margin weakened sequentially and year-over-year, with cost of revenue growing faster than revenue in both comparisons. This relationship indicates that cost pressures were the strongest observable driver of margin compression.
Compared with the immediately preceding quarter, revenue was essentially unchanged while gross profit and gross margin both decreased. Versus the same quarter one year earlier, revenue was higher but gross profit and gross margin were lower.
Monitor the trajectory of cost of revenue relative to revenue in future quarters for signs of sustained margin pressure.