Coherent Corp. stock research
FY2024 Q3
Coherent (COHR) Gross Margin — Quarter Ended Mar 31, 2024
In the current quarter, revenue increased sequentially, but cost of revenue increased at a faster pace, leading to higher gross profit yet a lower gross margin. Compared with the same quarter last year, revenue was stable while cost of revenue was higher, resulting in lower gross profit and gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
In the current quarter, revenue increased sequentially, but cost of revenue increased at a faster pace, leading to higher gross profit yet a lower gross margin. Compared with the same quarter last year, revenue was stable while cost of revenue was higher, resulting in lower gross profit and gross margin.
- The primary observable driver of margin change was the relationship between cost of revenue and revenue; cost of revenue grew faster than revenue sequentially and was higher year-over-year despite stable revenue.
- Sequentially, gross margin weakened from the previous quarter as cost of revenue increased more than revenue. Year-over-year, gross margin declined from the same quarter last year as cost of revenue rose while revenue remained unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.3%
Gross profit
$366.5M
Revenue
$1.2B
Cost of revenue
$842.3M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-3.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.2B | $343.4M | $861.7M | 28.5% |
| Sep 30, 2023 | $1.1B | $306.9M | $746.2M | 29.1% |
| Dec 31, 2023 | $1.1B | $350.6M | $780.8M | 31.0% |
| Mar 31, 2024 | $1.2B | $366.5M | $842.3M | 30.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.7 pts
Year-over-year change
Mar 31, 2023
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin change was the relationship between cost of revenue and revenue; cost of revenue grew faster than revenue sequentially and was higher year-over-year despite stable revenue.
Sequentially, gross margin weakened from the previous quarter as cost of revenue increased more than revenue. Year-over-year, gross margin declined from the same quarter last year as cost of revenue rose while revenue remained unchanged.
Monitor the trend of cost of revenue growth relative to revenue growth for potential further margin pressure.