Boston Scientific Corporation stock research
FY2024 Q2
Boston Scientific (BSX) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue rose at a slower pace, leading to a higher gross margin. Versus the same quarter one year earlier, gross margin was lower despite higher revenue and gross profit, as cost of revenue grew at a faster rate.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue rose at a slower pace, leading to a higher gross margin. Versus the same quarter one year earlier, gross margin was lower despite higher revenue and gross profit, as cost of revenue grew at a faster rate.
- Gross margin improved sequentially as revenue growth outpaced the increase in cost of revenue. Compared to the prior year, the gross margin weakened because cost of revenue rose disproportionately relative to revenue.
- Versus the prior quarter, gross margin was higher. Relative to the same quarter one year prior, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.2%
Gross profit
$2.9B
Revenue
$4.1B
Cost of revenue
$1.3B
Quarter-over-quarter change
+0.5 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.5B | $2.4B | $1.1B | 68.8% |
| Dec 31, 2023 | $3.7B | $2.6B | $1.1B | 69.2% |
| Mar 31, 2024 | $3.9B | $2.6B | $1.2B | 68.7% |
| Jun 30, 2024 | $4.1B | $2.9B | $1.3B | 69.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially as revenue growth outpaced the increase in cost of revenue. Compared to the prior year, the gross margin weakened because cost of revenue rose disproportionately relative to revenue.
Versus the prior quarter, gross margin was higher. Relative to the same quarter one year prior, gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue to assess whether gross margin can stabilize or improve.