Cummins Inc. stock research
FY2024 Q2
Cummins (CMI) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was unchanged from the same quarter one year ago and improved slightly from the previous quarter.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin was unchanged from the same quarter one year ago and improved slightly from the previous quarter.
- Gross margin remained stable year over year, indicating that the relationship between revenue and cost of revenue was consistent. The improvement from the previous quarter suggests cost management relative to revenue strengthened modestly.
- Compared to the prior quarter, revenue and gross profit were higher while cost of revenue also increased, leading to a slightly improved gross margin. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.9%
Gross profit
$2.2B
Revenue
$8.8B
Cost of revenue
$6.6B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.1 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 | $8.4B | $2.1B | $6.4B | 24.6% |
| Dec 31, 2023 | $8.5B | $2.0B | $6.5B | 23.4% |
| Mar 31, 2024 | $8.4B | $2.0B | $6.4B | 24.3% |
| Jun 30, 2024 | $8.8B | $2.2B | $6.6B | 24.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin remained stable year over year, indicating that the relationship between revenue and cost of revenue was consistent. The improvement from the previous quarter suggests cost management relative to revenue strengthened modestly.
Compared to the prior quarter, revenue and gross profit were higher while cost of revenue also increased, leading to a slightly improved gross margin. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Monitor whether the stable year-over-year gross margin persists given the higher revenue and cost of revenue base.