BA

Baxter International Inc. stock research

Jun 30, 2024

FY2024 Q2

Baxter International (BAX) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit were higher than the immediately preceding quarter but lower than the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved meaningfully compared to the year-ago period.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit were higher than the immediately preceding quarter but lower than the same quarter one year earlier. Gross margin weakened slightly from the prior quarter but improved meaningfully compared to the year-ago period.

  • The relationship between gross margin and its components shows that cost of revenue decreased less than revenue on a relative basis compared to the preceding quarter, slightly compressing margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower but gross margin was markedly higher.

Gross margin snapshot

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

Gross margin

38.3%

Gross profit

$1.0B

Revenue

$2.7B

Cost of revenue

$1.7B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+8.5 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$4.8B$1.4B$2.6B29.8%
Sep 30, 2023$414.0M$664.0M$1.5B160.4%
Mar 31, 2024$2.5B$961.0M$1.5B38.6%
Jun 30, 2024$2.7B$1.0B$1.7B38.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.3 pts

Year-over-year change

Jun 30, 2023

+8.5 pts

What the margin says

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

The relationship between gross margin and its components shows that cost of revenue decreased less than revenue on a relative basis compared to the preceding quarter, slightly compressing margin.

Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower but gross margin was markedly higher.

Monitor the direction of cost of revenue relative to revenue in upcoming quarters to assess margin stability.

BAX Gross Margin — Quarter Ended Jun 30, 2024