BD

Becton, Dickinson and Company stock research

Dec 31, 2023

FY2024 Q1

Becton, Dickinson and (BDX) Gross Margin — Quarter Ended Dec 31, 2023

Revenue decreased compared to the prior quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter last year, revenue was slightly higher, but gross profit was lower and cost of revenue was higher, leading to a lower gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2024 Q1

Revenue decreased compared to the prior quarter, while gross profit increased and cost of revenue decreased, resulting in a higher gross margin. Compared to the same quarter last year, revenue was slightly higher, but gross profit was lower and cost of revenue was higher, leading to a lower gross margin.

  • The gross margin improved sequentially as cost of revenue declined more sharply than revenue. The year-over-year weakening in gross margin was driven by cost of revenue growing faster than revenue.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

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

Gross margin

43.1%

Gross profit

$2.0B

Revenue

$4.7B

Cost of revenue

$2.7B

Quarter-over-quarter change

+9.6 pts

Year-over-year change

-3.4 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$2.2B$2.6B46.4%
Jun 30, 2023$4.9B$2.1B$2.8B43.1%
Sep 30, 2023$5.1B$1.7B$3.4B33.4%
Dec 31, 2023$4.7B$2.0B$2.7B43.1%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+9.6 pts

Year-over-year change

Dec 31, 2022

-3.4 pts

What the margin says

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

The gross margin improved sequentially as cost of revenue declined more sharply than revenue. The year-over-year weakening in gross margin was driven by cost of revenue growing faster than revenue.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Monitor the relationship between revenue and cost of revenue trends, as cost growth outpaced revenue growth year-over-year.

BDX Gross Margin — Quarter Ended Dec 31, 2023