Air Products and Chemicals, Inc. stock research
FY2024 Q3
Air Products and Chemicals (APD) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue increased compared to the prior quarter but was unchanged from the same quarter last year. Gross profit improved relative to both periods, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q3
In the current quarter, revenue increased compared to the prior quarter but was unchanged from the same quarter last year. Gross profit improved relative to both periods, leading to a higher gross margin.
- The gross margin improvement was supported by a reduction in cost of revenue compared to the same quarter last year, while revenue remained steady. Sequentially, cost of revenue was stable as revenue grew.
- Compared to the immediately preceding quarter, both revenue and gross profit were higher, and cost of revenue was consistent, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue was flat, but gross profit rose due to a lower cost of revenue, contributing to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$979.9M
Revenue
$3.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $3.0B | $979.9M | $2.0B | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.8 pts
Year-over-year change
Jun 30, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was supported by a reduction in cost of revenue compared to the same quarter last year, while revenue remained steady. Sequentially, cost of revenue was stable as revenue grew.
Compared to the immediately preceding quarter, both revenue and gross profit were higher, and cost of revenue was consistent, resulting in an improved gross margin. Versus the same quarter one year earlier, revenue was flat, but gross profit rose due to a lower cost of revenue, contributing to a higher gross margin.
Monitor the trend in cost of revenue, as its stability in the current quarter contrasts with the year-over-year decline.