AP

Aptiv PLC stock research

Sep 30, 2023

FY2023 Q3

Aptiv (APTV) Gross Margin — Quarter Ended Sep 30, 2023

Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose sequentially and year-over-year, while cost of revenue declined sequentially and increased year-over-year, resulting in a gross margin that improved from the prior quarter but was slightly lower than the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose sequentially and year-over-year, while cost of revenue declined sequentially and increased year-over-year, resulting in a gross margin that improved from the prior quarter but was slightly lower than the year-ago period.

  • The gross margin improved sequentially as gross profit grew while cost of revenue declined. Compared to the prior year, gross profit increased but cost of revenue rose at a faster pace, leading to a slightly weaker margin.
  • Sequentially, revenue was lower but gross profit was higher, and cost of revenue was lower, resulting in an improved gross margin. Year-over-year, revenue and gross profit were both higher, but cost of revenue increased more, leading to a slightly weakened gross margin.

Gross margin snapshot

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

Gross margin

17.5%

Gross profit

$893.0M

Revenue

$5.1B

Cost of revenue

$4.2B

Quarter-over-quarter change

+0.8 pts

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$4.8B$760.0M$4.1B15.8%
Jun 30, 2023$5.2B$864.0M$4.3B16.6%
Sep 30, 2023$5.1B$893.0M$4.2B17.5%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+0.8 pts

Year-over-year change

Sep 30, 2022

+0.3 pts

What the margin says

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

The gross margin improved sequentially as gross profit grew while cost of revenue declined. Compared to the prior year, gross profit increased but cost of revenue rose at a faster pace, leading to a slightly weaker margin.

Sequentially, revenue was lower but gross profit was higher, and cost of revenue was lower, resulting in an improved gross margin. Year-over-year, revenue and gross profit were both higher, but cost of revenue increased more, leading to a slightly weakened gross margin.

Monitor the relationship between revenue and cost of revenue trends, as cost growth outpaced revenue growth year-over-year.