AP

Amphenol Corporation stock research

Jun 30, 2023

FY2023 Q2

Amphenol (APH) Gross Margin — Quarter Ended Jun 30, 2023

Revenue was stable year over year, while gross profit decreased slightly and cost of revenue remained comparable, resulting in a modest improvement in gross margin compared to both the prior quarter and the same quarter last year. The relationship among the metrics shows that the gross margin strengthened as cost of revenue did not increase proportionally with revenue.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue was stable year over year, while gross profit decreased slightly and cost of revenue remained comparable, resulting in a modest improvement in gross margin compared to both the prior quarter and the same quarter last year. The relationship among the metrics shows that the gross margin strengthened as cost of revenue did not increase proportionally with revenue.

  • The gross margin improvement versus the previous quarter was supported by a more favorable spread between revenue growth and cost of revenue growth.
  • Compared to the immediately preceding quarter, revenue, gross profit, cost of revenue and gross margin were all higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was lower, cost of revenue was slightly lower, and gross margin was higher.

Gross margin snapshot

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

Gross margin

32.5%

Gross profit

$991.7M

Revenue

$3.1B

Cost of revenue

$2.1B

Quarter-over-quarter change

+0.8 pts

Year-over-year change

+0.5 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%
Jun 30, 2023$3.1B$991.7M$2.1B32.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+0.8 pts

Year-over-year change

Jun 30, 2022

+0.5 pts

What the margin says

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

The gross margin improvement versus the previous quarter was supported by a more favorable spread between revenue growth and cost of revenue growth.

Compared to the immediately preceding quarter, revenue, gross profit, cost of revenue and gross margin were all higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was lower, cost of revenue was slightly lower, and gross margin was higher.

Monitor the trajectory of cost of revenue relative to revenue, as its stable behavior contributed to the margin improvement this quarter.