AP

Amphenol Corporation stock research

Mar 31, 2024

FY2024 Q1

Amphenol (APH) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and cost of revenue were unchanged from the prior quarter, while gross margin improved slightly. Compared to the same quarter a year ago, both revenue and cost of revenue grew, but gross profit increased at a faster pace, leading to a higher gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and cost of revenue were unchanged from the prior quarter, while gross margin improved slightly. Compared to the same quarter a year ago, both revenue and cost of revenue grew, but gross profit increased at a faster pace, leading to a higher gross margin.

  • The strongest observable margin driver is the improvement in gross margin, which reflects a favorable relationship between revenue and cost of revenue. Gross profit grew more than revenue and cost of revenue on a year-over-year basis, and sequentially, a stable cost base supported a slightly higher margin.
  • Sequentially, gross margin was higher, while revenue and cost of revenue remained flat. Year-over-year, gross margin was higher, with revenue and cost of revenue both increasing, and gross profit growing at a faster rate.

Gross margin snapshot

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

Gross margin

33.4%

Gross profit

$1.1B

Revenue

$3.3B

Cost of revenue

$2.2B

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+1.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$3.1B$991.7M$2.1B32.5%
Sep 30, 2023$3.2B$1.0B$2.2B32.8%
Dec 31, 2023$3.3B$1.1B$2.2B33.1%
Mar 31, 2024$3.3B$1.1B$2.2B33.4%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+0.4 pts

Year-over-year change

Mar 31, 2023

+1.7 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, which reflects a favorable relationship between revenue and cost of revenue. Gross profit grew more than revenue and cost of revenue on a year-over-year basis, and sequentially, a stable cost base supported a slightly higher margin.

Sequentially, gross margin was higher, while revenue and cost of revenue remained flat. Year-over-year, gross margin was higher, with revenue and cost of revenue both increasing, and gross profit growing at a faster rate.

Monitor inventory levels, as reported in the balance sheet, which are a component of cost of revenue.