Coherent Corp. stock research
FY2023 Q4
Coherent (COHR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was unchanged from the prior quarter but higher than a year earlier. Gross profit declined sequentially and was slightly higher than the prior year, while cost of revenue increased both sequentially and year-over-year, resulting in a lower gross margin compared to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue was unchanged from the prior quarter but higher than a year earlier. Gross profit declined sequentially and was slightly higher than the prior year, while cost of revenue increased both sequentially and year-over-year, resulting in a lower gross margin compared to both periods.
- The primary factor affecting gross margin was the increase in cost of revenue relative to revenue. Revenue remained stable sequentially, but cost of revenue rose, compressing gross profit and margin.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew while revenue held steady. Versus the same quarter one year earlier, gross margin also weakened, as revenue growth was outpaced by a larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.5%
Gross profit
$343.4M
Revenue
$1.2B
Cost of revenue
$861.7M
Quarter-over-quarter change
-5.4 pts
Year-over-year change
-8.3 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 | $1.2B | $420.2M | $820.0M | 33.9% |
| Jun 30, 2023 | $1.2B | $343.4M | $861.7M | 28.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-5.4 pts
Year-over-year change
Jun 30, 2022
-8.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary factor affecting gross margin was the increase in cost of revenue relative to revenue. Revenue remained stable sequentially, but cost of revenue rose, compressing gross profit and margin.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew while revenue held steady. Versus the same quarter one year earlier, gross margin also weakened, as revenue growth was outpaced by a larger increase in cost of revenue.
Monitor the relationship between cost of revenue and revenue in upcoming quarters to assess margin stability.