Centene Corporation stock research
FY2023 Q3
Centene (CNC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue remained stable compared to the prior quarter, while cost of revenue decreased, leading to a gross profit and gross margin that were consistent with the previous period. Versus the same quarter one year earlier, revenue was higher, cost of revenue was lower, and both gross profit and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue remained stable compared to the prior quarter, while cost of revenue decreased, leading to a gross profit and gross margin that were consistent with the previous period. Versus the same quarter one year earlier, revenue was higher, cost of revenue was lower, and both gross profit and gross margin improved.
- The strongest observable margin driver is the reduction in cost of revenue compared to the same quarter last year, which supported higher gross profit and gross margin despite a modest increase in revenue.
- Relative to the immediately preceding quarter, revenue, gross profit, cost of revenue, and gross margin were all essentially stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.2%
Gross profit
$4.6B
Revenue
$35.0B
Cost of revenue
$856.0M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+1.3 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 | $35.0B | $4.6B | $870.0M | 13.3% |
| Jun 30, 2023 | $34.8B | $4.6B | $877.0M | 13.2% |
| Sep 30, 2023 | $35.0B | $4.6B | $856.0M | 13.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.0 pts
Year-over-year change
Sep 30, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue compared to the same quarter last year, which supported higher gross profit and gross margin despite a modest increase in revenue.
Relative to the immediately preceding quarter, revenue, gross profit, cost of revenue, and gross margin were all essentially stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor whether the current level of cost of revenue can be sustained, as a lower base contributed to the margin improvement.