Becton, Dickinson and Company stock research
FY2024 Q2
Becton, Dickinson and (BDX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved from the prior quarter but weakened compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable relative to the prior quarter and higher year over year. Gross margin improved from the prior quarter but weakened compared to the same quarter one year earlier.
- The improvement in gross margin from the prior quarter was driven by revenue growing faster than cost of revenue, as revenue increased while cost of revenue remained unchanged. This contrasts with the year-ago comparison, where cost of revenue grew at a pace that outpaced revenue growth.
- Compared to the prior quarter, gross margin improved as revenue rose and cost of revenue held steady. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.7%
Gross profit
$2.3B
Revenue
$5.0B
Cost of revenue
$2.7B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $4.9B | $2.1B | $2.8B | 43.1% |
| Sep 30, 2023 | $5.1B | $1.7B | $3.4B | 33.4% |
| Dec 31, 2023 | $4.7B | $2.0B | $2.7B | 43.1% |
| Mar 31, 2024 | $5.0B | $2.3B | $2.7B | 45.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.6 pts
Year-over-year change
Mar 31, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by revenue growing faster than cost of revenue, as revenue increased while cost of revenue remained unchanged. This contrasts with the year-ago comparison, where cost of revenue grew at a pace that outpaced revenue growth.
Compared to the prior quarter, gross margin improved as revenue rose and cost of revenue held steady. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its stability this quarter versus the prior quarter contrasts with its faster growth year over year.