Crown Castle Inc. stock research
FY2023 Q2
Crown Castle (CCI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, gross profit, and cost of revenue each declined relative to the prior quarter and versus the same quarter one year ago, leading to a lower gross margin. The gross margin weakened sequentially and deteriorated further compared with the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue, gross profit, and cost of revenue each declined relative to the prior quarter and versus the same quarter one year ago, leading to a lower gross margin. The gross margin weakened sequentially and deteriorated further compared with the year-ago period.
- The reduction in gross profit outpaced the reduction in revenue, as cost of revenue did not decline proportionally, driving the gross margin lower. The year-over-year decline in gross margin was more pronounced due to a greater relative drop in gross profit compared to revenue.
- Compared to the immediately preceding quarter, both revenue and gross profit were lower, while gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit decreased, and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.5%
Gross profit
$41.0M
Revenue
$139.0M
Cost of revenue
$98.0M
Quarter-over-quarter change
-0.7 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $149.0M | $45.0M | $104.0M | 30.2% |
| Jun 30, 2023 | $139.0M | $41.0M | $98.0M | 29.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.7 pts
Year-over-year change
Jun 30, 2022
-3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in gross profit outpaced the reduction in revenue, as cost of revenue did not decline proportionally, driving the gross margin lower. The year-over-year decline in gross margin was more pronounced due to a greater relative drop in gross profit compared to revenue.
Compared to the immediately preceding quarter, both revenue and gross profit were lower, while gross margin weakened. Relative to the same quarter one year earlier, revenue and gross profit decreased, and gross margin declined.
Monitor whether the sequential and year-over-year decline in gross profit continues to outpace changes in revenue, as this pattern directly affects gross margin.