Atmos Energy Corporation stock research
FY2024 Q1
Atmos Energy (ATO) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and cost of revenue are all positive this quarter, with gross margin representing the share of revenue retained after deducting cost of revenue. The gross margin improved compared to the same quarter a year ago but weakened sequentially.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue, gross profit, and cost of revenue are all positive this quarter, with gross margin representing the share of revenue retained after deducting cost of revenue. The gross margin improved compared to the same quarter a year ago but weakened sequentially.
- The most observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue increased substantially from the prior quarter while revenue also rose, and decreased from the year-ago quarter while revenue declined, leading to divergent margin movements.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower because cost of revenue increased more than revenue. Compared to the same quarter one year earlier, revenue was lower, yet gross profit and gross margin were higher, as cost of revenue declined proportionally more.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.7%
Gross profit
$819.6M
Revenue
$1.2B
Cost of revenue
$338.9M
Quarter-over-quarter change
-28.7 pts
Year-over-year change
+20.5 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 | $1.5B | $874.8M | $666.2M | 56.8% |
| Jun 30, 2023 | $662.7M | $618.2M | $44.5M | 93.3% |
| Sep 30, 2023 | $587.6M | $584.5M | $3.2M | 99.5% |
| Dec 31, 2023 | $1.2B | $819.6M | $338.9M | 70.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-28.7 pts
Year-over-year change
Dec 31, 2022
+20.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue increased substantially from the prior quarter while revenue also rose, and decreased from the year-ago quarter while revenue declined, leading to divergent margin movements.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower because cost of revenue increased more than revenue. Compared to the same quarter one year earlier, revenue was lower, yet gross profit and gross margin were higher, as cost of revenue declined proportionally more.
Monitor cost of revenue trends, as their magnitude changes have a direct and material effect on gross margin.