BA

The Boeing Company stock research

Mar 31, 2024

FY2024 Q1

The Boeing (BA) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both declined from the prior quarter, while cost of revenue decreased at a slightly slower pace, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit was essentially stable, and gross margin improved as cost of revenue declined more than revenue.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both declined from the prior quarter, while cost of revenue decreased at a slightly slower pace, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was lower but gross profit was essentially stable, and gross margin improved as cost of revenue declined more than revenue.

  • The strongest observable margin driver is the relationship between cost of revenue and revenue: in the current quarter, cost of revenue fell more sharply than revenue relative to the year-ago quarter, which supported gross margin improvement.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was lower, gross profit was stable, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

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

Gross margin

11.3%

Gross profit

$1.9B

Revenue

$16.6B

Cost of revenue

$14.7B

Quarter-over-quarter change

-0.9 pts

Year-over-year change

+0.6 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$19.8B$1.9B$17.8B9.8%
Sep 30, 2023$18.1B$1.2B$16.9B6.4%
Dec 31, 2023$22.0B$2.7B$19.3B12.2%
Mar 31, 2024$16.6B$1.9B$14.7B11.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

-0.9 pts

Year-over-year change

Mar 31, 2023

+0.6 pts

What the margin says

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

The strongest observable margin driver is the relationship between cost of revenue and revenue: in the current quarter, cost of revenue fell more sharply than revenue relative to the year-ago quarter, which supported gross margin improvement.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was lower, gross profit was stable, cost of revenue was lower, and gross margin improved.

Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor behind the year-over-year gross margin improvement.