Boston Scientific Corporation stock research
FY2023 Q3
Boston Scientific (BSX) Gross Margin — Quarter Ended Sep 30, 2023
The current quarter's gross margin decreased compared to both the preceding quarter and the same quarter last year. Revenue and gross profit were lower than the preceding quarter but higher than the year-ago period, while cost of revenue was unchanged from the preceding quarter and increased from the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
The current quarter's gross margin decreased compared to both the preceding quarter and the same quarter last year. Revenue and gross profit were lower than the preceding quarter but higher than the year-ago period, while cost of revenue was unchanged from the preceding quarter and increased from the year-ago period.
- The strongest observable margin driver is the relative movement of cost of revenue: it remained flat sequentially even as revenue declined, and it grew at a faster pace than revenue year over year.
- Compared to the preceding quarter, gross margin weakened as revenue fell while cost of revenue was unchanged. Compared to the same quarter last year, gross margin was also lower, with cost of revenue increasing more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.8%
Gross profit
$2.4B
Revenue
$3.5B
Cost of revenue
$1.1B
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-0.3 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 | $3.4B | $2.3B | $1.0B | 69.3% |
| Jun 30, 2023 | $3.6B | $2.5B | $1.1B | 70.6% |
| Sep 30, 2023 | $3.5B | $2.4B | $1.1B | 68.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.8 pts
Year-over-year change
Sep 30, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative movement of cost of revenue: it remained flat sequentially even as revenue declined, and it grew at a faster pace than revenue year over year.
Compared to the preceding quarter, gross margin weakened as revenue fell while cost of revenue was unchanged. Compared to the same quarter last year, gross margin was also lower, with cost of revenue increasing more than revenue.
Monitor the trend of cost of revenue relative to revenue, as its stability or growth rate has a direct impact on gross margin.