Amphenol Corporation stock research
FY2023 Q3
Amphenol (APH) Gross Margin — Quarter Ended Sep 30, 2023
The current quarter's gross margin improved compared to both the prior quarter and the same quarter last year, with revenue higher than the prior quarter but lower than the year-ago quarter. Gross profit increased sequentially but decreased year-over-year, while cost of revenue was stable year-over-year and increased sequentially.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
The current quarter's gross margin improved compared to both the prior quarter and the same quarter last year, with revenue higher than the prior quarter but lower than the year-ago quarter. Gross profit increased sequentially but decreased year-over-year, while cost of revenue was stable year-over-year and increased sequentially.
- The strongest observable margin driver is the improvement in gross margin percentage, which resulted from a more favorable relationship between revenue and cost of revenue compared to the prior periods.
- Compared to the immediately preceding quarter, revenue and gross profit increased, while cost of revenue rose, but gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit decreased, cost of revenue remained flat, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$1.0B
Revenue
$3.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.6 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 | $3.0B | $943.4M | $2.0B | 31.7% |
| Jun 30, 2023 | $3.1B | $991.7M | $2.1B | 32.5% |
| Sep 30, 2023 | $3.2B | $1.0B | $2.2B | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.3 pts
Year-over-year change
Sep 30, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin percentage, which resulted from a more favorable relationship between revenue and cost of revenue compared to the prior periods.
Compared to the immediately preceding quarter, revenue and gross profit increased, while cost of revenue rose, but gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit decreased, cost of revenue remained flat, and gross margin improved.
Monitor the cost of revenue as a percentage of revenue to see if the margin improvement can be sustained.