AP

Aptiv PLC stock research

Mar 31, 2024

FY2024 Q1

Aptiv (APTV) Gross Margin — Quarter Ended Mar 31, 2024

Revenue was essentially flat versus the preceding quarter, while gross profit decreased and cost of revenue held steady, leading to a lower gross margin. Compared with the same quarter one year earlier, revenue increased, gross profit improved, and cost of revenue declined, resulting in a stronger gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue was essentially flat versus the preceding quarter, while gross profit decreased and cost of revenue held steady, leading to a lower gross margin. Compared with the same quarter one year earlier, revenue increased, gross profit improved, and cost of revenue declined, resulting in a stronger gross margin.

  • The gross margin weakened from the preceding quarter due to a reduction in gross profit with revenue unchanged. The year-over-year improvement in gross margin was supported by a combination of higher revenue and lower cost of revenue.
  • Sequentially, gross margin was lower. Compared with the same quarter last year, gross margin was higher.

Gross margin snapshot

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

Gross margin

17.9%

Gross profit

$878.0M

Revenue

$4.9B

Cost of revenue

$4.0B

Quarter-over-quarter change

+0.5 pts

Year-over-year change

+2.1 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%
Mar 31, 2024$4.9B$878.0M$4.0B17.9%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+0.5 pts

Year-over-year change

Mar 31, 2023

+2.1 pts

What the margin says

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

The gross margin weakened from the preceding quarter due to a reduction in gross profit with revenue unchanged. The year-over-year improvement in gross margin was supported by a combination of higher revenue and lower cost of revenue.

Sequentially, gross margin was lower. Compared with the same quarter last year, gross margin was higher.

Monitor the trajectory of gross profit relative to revenue, as the current period showed a decline in gross profit despite stable revenue.