Air Products and Chemicals, Inc. stock research
FY2024 Q2
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Mar 31, 2024
Revenue declined from the prior quarter and from the same quarter a year earlier, while gross profit increased slightly, driven by a larger reduction in cost of revenue. Gross margin improved to a level higher than both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue declined from the prior quarter and from the same quarter a year earlier, while gross profit increased slightly, driven by a larger reduction in cost of revenue. Gross margin improved to a level higher than both the preceding quarter and the year-ago quarter.
- Cost of revenue fell more sharply than revenue, which allowed gross profit to rise despite lower sales. This relationship between cost and revenue was the primary observable factor behind the gross margin expansion.
- Compared to the prior quarter, gross margin improved as revenue decreased modestly but cost of revenue declined more. Versus the same quarter last year, both revenue and cost of revenue were lower, but gross margin strengthened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.0%
Gross profit
$938.7M
Revenue
$2.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+3.4 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 | $3.0B | $963.2M | $2.1B | 31.7% |
| Sep 30, 2023 | $3.2B | $984.1M | $2.2B | 30.8% |
| Dec 31, 2023 | $3.0B | $930.2M | $2.1B | 31.0% |
| Mar 31, 2024 | $2.9B | $938.7M | $2.0B | 32.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.0 pts
Year-over-year change
Mar 31, 2023
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue fell more sharply than revenue, which allowed gross profit to rise despite lower sales. This relationship between cost and revenue was the primary observable factor behind the gross margin expansion.
Compared to the prior quarter, gross margin improved as revenue decreased modestly but cost of revenue declined more. Versus the same quarter last year, both revenue and cost of revenue were lower, but gross margin strengthened significantly.
Monitor the trend of cost of revenue relative to revenue, as further cost reductions could sustain or improve gross margin.