Aptiv PLC stock research
FY2023 Q1
Aptiv (APTV) Gross Margin — Quarter Ended Mar 31, 2023
Current quarter revenue increased from both the prior quarter and the same quarter last year, while gross profit declined sequentially but improved year over year. Gross margin weakened compared to the prior quarter but strengthened relative to the prior year period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Current quarter revenue increased from both the prior quarter and the same quarter last year, while gross profit declined sequentially but improved year over year. Gross margin weakened compared to the prior quarter but strengthened relative to the prior year period.
- The relationship between revenue growth and cost of revenue growth is the key margin driver. Sequentially, cost of revenue expanded at a faster pace than revenue, compressing gross margin.
- Compared to the prior quarter, gross margin was lower as cost of revenue increased more than revenue. Compared to the same quarter last year, gross margin was higher as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.8%
Gross profit
$760.0M
Revenue
$4.8B
Cost of revenue
$4.1B
Quarter-over-quarter change
n/a
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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $4.8B | $760.0M | $4.1B | 15.8% |
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
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue growth and cost of revenue growth is the key margin driver. Sequentially, cost of revenue expanded at a faster pace than revenue, compressing gross margin.
Compared to the prior quarter, gross margin was lower as cost of revenue increased more than revenue. Compared to the same quarter last year, gross margin was higher as revenue grew faster than cost of revenue.
Monitor the trend of cost of revenue relative to revenue, as the sequential change compressed margins.