AMETEK, Inc. stock research
FY2024 Q3
AMETEK (AME) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was unchanged from the prior quarter and higher than a year ago. Gross profit was slightly lower than the prior quarter but higher than a year ago, while cost of revenue was similar to the prior quarter and higher than a year ago, resulting in a gross margin that was stable sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was unchanged from the prior quarter and higher than a year ago. Gross profit was slightly lower than the prior quarter but higher than a year ago, while cost of revenue was similar to the prior quarter and higher than a year ago, resulting in a gross margin that was stable sequentially but weakened year over year.
- The strongest observable margin driver is the relationship between cost of revenue and revenue. Sequentially, both were stable, so gross margin held steady. Year over year, cost of revenue increased at a faster rate than revenue, compressing the gross margin.
- Compared to the preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$615.8M
Revenue
$1.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.1 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $1.7B | $615.0M | $1.1B | 35.5% |
| Mar 31, 2024 | $1.7B | $591.5M | $1.1B | 34.1% |
| Jun 30, 2024 | $1.7B | $624.4M | $1.1B | 36.0% |
| Sep 30, 2024 | $1.7B | $615.8M | $1.1B | 36.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.1 pts
Year-over-year change
Sep 30, 2023
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue. Sequentially, both were stable, so gross margin held steady. Year over year, cost of revenue increased at a faster rate than revenue, compressing the gross margin.
Compared to the preceding quarter, gross margin was stable. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend of cost of revenue relative to revenue, as its faster growth year over year has eroded margin.