A. O. Smith Corporation stock research
FY2023 Q1
A. O. Smith (AOS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue was slightly lower but gross profit was higher, as cost of revenue declined more sharply, resulting in a stronger gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue was slightly lower but gross profit was higher, as cost of revenue declined more sharply, resulting in a stronger gross margin.
- The gross margin improved sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue in the year-ago comparison, and by revenue growth outpacing cost growth in the sequential comparison.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was lower but gross profit was higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$374.1M
Revenue
$966.4M
Cost of revenue
$592.3M
Quarter-over-quarter change
n/a
Year-over-year change
+3.8 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 | $966.4M | $374.1M | $592.3M | 38.7% |
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
+3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue in the year-ago comparison, and by revenue growth outpacing cost growth in the sequential comparison.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue was lower but gross profit was higher, and gross margin strengthened.
Monitor the allowance for credit losses, which increased from the prior quarter end, as it may affect future revenue recognition.