CO

Coherent Corp. stock research

Sep 30, 2023

FY2024 Q1

Coherent (COHR) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but weakened significantly from a year ago.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2024 Q1

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but weakened significantly from a year ago.

  • The decline in cost of revenue was proportionally larger than the decline in revenue, leading to a slight gross margin improvement from the prior quarter.
  • Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.

Gross margin snapshot

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

Gross margin

29.1%

Gross profit

$306.9M

Revenue

$1.1B

Cost of revenue

$746.2M

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-3.8 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%
Jun 30, 2023$1.2B$343.4M$861.7M28.5%
Sep 30, 2023$1.1B$306.9M$746.2M29.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+0.6 pts

Year-over-year change

Sep 30, 2022

-3.8 pts

What the margin says

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

The decline in cost of revenue was proportionally larger than the decline in revenue, leading to a slight gross margin improvement from the prior quarter.

Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.

Monitor the trajectory of revenue relative to cost of revenue to assess whether gross margin can stabilize or improve further.