The Cooper Companies, Inc. stock research
FY2023 Q1
The Cooper Companies (COO) Gross Margin — Quarter Ended Jan 31, 2023
Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Gross margin improved sequentially but weakened compared with the year-ago quarter, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q1
Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Gross margin improved sequentially but weakened compared with the year-ago quarter, reflecting a mixed performance.
- The strongest observable margin driver is the sequential decline in cost of revenue, which fell while revenue rose, contributing to the improvement in gross margin.
- Compared with the immediately preceding quarter, gross margin was higher, driven by a lower cost of revenue alongside higher revenue. Compared with the same quarter one year earlier, gross margin was lower, as cost of revenue increased more than proportionally relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.1%
Gross profit
$558.5M
Revenue
$858.5M
Cost of revenue
$300.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $858.5M | $558.5M | $300.0M | 65.1% |
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
Jan 31, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential decline in cost of revenue, which fell while revenue rose, contributing to the improvement in gross margin.
Compared with the immediately preceding quarter, gross margin was higher, driven by a lower cost of revenue alongside higher revenue. Compared with the same quarter one year earlier, gross margin was lower, as cost of revenue increased more than proportionally relative to revenue.
Monitor the trajectory of cost of revenue, which increased year over year despite sequential improvement, as it will be key to sustaining gross margin.