AP

Amphenol Corporation stock research

Mar 31, 2023

FY2023 Q1

Amphenol (APH) Gross Margin — Quarter Ended Mar 31, 2023

Gross profit is revenue less cost of revenue, and gross margin expresses that profit as a percentage of revenue. This quarter, revenue was unchanged from a year ago but lower than the prior quarter, while gross profit increased year-over-year and decreased sequentially, resulting in a gross margin that improved slightly from the same quarter last year but weakened marginally from the preceding quarter.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Gross profit is revenue less cost of revenue, and gross margin expresses that profit as a percentage of revenue. This quarter, revenue was unchanged from a year ago but lower than the prior quarter, while gross profit increased year-over-year and decreased sequentially, resulting in a gross margin that improved slightly from the same quarter last year but weakened marginally from the preceding quarter.

  • The strongest observable margin driver is the year-over-year gross margin improvement achieved on flat revenue, indicating a modest reduction in cost of revenue relative to gross profit.
  • Compared to the prior quarter, revenue and cost of revenue both decreased, while gross profit declined slightly, leading to a marginally weaker gross margin. Compared to the same quarter last year, revenue was stable, cost of revenue was unchanged, but gross profit increased, resulting in a higher gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

31.7%

Gross profit

$943.4M

Revenue

$3.0B

Cost of revenue

$2.0B

Quarter-over-quarter change

n/a

Year-over-year change

+0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.0B$943.4M$2.0B31.7%

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

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the year-over-year gross margin improvement achieved on flat revenue, indicating a modest reduction in cost of revenue relative to gross profit.

Compared to the prior quarter, revenue and cost of revenue both decreased, while gross profit declined slightly, leading to a marginally weaker gross margin. Compared to the same quarter last year, revenue was stable, cost of revenue was unchanged, but gross profit increased, resulting in a higher gross margin.

Monitor inventory levels, which increased slightly from the prior quarter, as inventories are a component of cost of revenue.