CO

Coherent Corp. stock research

Mar 31, 2023

FY2023 Q3

Coherent (COHR) Gross Margin — Quarter Ended Mar 31, 2023

Revenue declined from the prior quarter but rose compared to the same quarter last year. Gross profit improved slightly sequentially and increased year-over-year, while cost of revenue decreased sequentially but increased year-over-year; the resulting gross margin improved from the prior quarter but weakened relative to the same period last year.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q3

Revenue declined from the prior quarter but rose compared to the same quarter last year. Gross profit improved slightly sequentially and increased year-over-year, while cost of revenue decreased sequentially but increased year-over-year; the resulting gross margin improved from the prior quarter but weakened relative to the same period last year.

  • The sequential improvement in gross margin was primarily associated with a larger proportional reduction in cost of revenue compared to the decline in revenue.
  • Compared to the immediately preceding quarter, gross margin improved; compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

33.9%

Gross profit

$420.2M

Revenue

$1.2B

Cost of revenue

$820.0M

Quarter-over-quarter change

n/a

Year-over-year change

-5.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.2B$420.2M$820.0M33.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-5.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was primarily associated with a larger proportional reduction in cost of revenue compared to the decline in revenue.

Compared to the immediately preceding quarter, gross margin improved; compared to the same quarter one year earlier, gross margin weakened.

Monitor the notable increase in inventories reported in the balance sheet.