Becton, Dickinson and Company stock research
FY2023 Q3
Becton, Dickinson and (BDX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to the prior quarter and unchanged from a year ago. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened sequentially and declined versus the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to the prior quarter and unchanged from a year ago. Cost of revenue rose in both comparisons, resulting in a gross margin that weakened sequentially and declined versus the same quarter last year.
- The gross margin weakened sequentially as cost of revenue increased more than revenue, while gross profit remained flat. Compared to a year ago, the margin decline was driven by a larger increase in cost of revenue relative to the rise in revenue.
- Sequentially, revenue was higher but gross profit was stable, cost of revenue was higher, and gross margin weakened. Compared to the same quarter last year, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.1%
Gross profit
$2.1B
Revenue
$4.9B
Cost of revenue
$2.8B
Quarter-over-quarter change
-3.3 pts
Year-over-year change
-1.5 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 | $4.8B | $2.2B | $2.6B | 46.4% |
| Jun 30, 2023 | $4.9B | $2.1B | $2.8B | 43.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-3.3 pts
Year-over-year change
Jun 30, 2022
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as cost of revenue increased more than revenue, while gross profit remained flat. Compared to a year ago, the margin decline was driven by a larger increase in cost of revenue relative to the rise in revenue.
Sequentially, revenue was higher but gross profit was stable, cost of revenue was higher, and gross margin weakened. Compared to the same quarter last year, revenue was higher, gross profit was stable, cost of revenue was higher, and gross margin declined.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in both comparisons compressed gross margin.