The Cooper Companies, Inc. stock research
FY2023 Q2
The Cooper Companies (COO) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit both increased compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was lower than both prior periods. Gross margin improved sequentially and relative to the year-ago quarter, reflecting that gross profit grew faster than revenue.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was lower than both prior periods. Gross margin improved sequentially and relative to the year-ago quarter, reflecting that gross profit grew faster than revenue.
- The improvement in gross margin relative to both the prior quarter and the year-ago quarter was driven by the combination of higher revenue and lower cost of revenue, which together expanded gross profit disproportionately.
- Compared with the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin was also higher. Revenue increased in both comparisons, while cost of revenue decreased in both.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.4%
Gross profit
$582.9M
Revenue
$877.4M
Cost of revenue
$294.5M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+2.3 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $858.5M | $558.5M | $300.0M | 65.1% |
| Apr 30, 2023 | $877.4M | $582.9M | $294.5M | 66.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+1.4 pts
Year-over-year change
Apr 30, 2022
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin relative to both the prior quarter and the year-ago quarter was driven by the combination of higher revenue and lower cost of revenue, which together expanded gross profit disproportionately.
Compared with the immediately preceding quarter, gross margin was higher; versus the same quarter one year earlier, gross margin was also higher. Revenue increased in both comparisons, while cost of revenue decreased in both.
Monitor whether the trend of lower cost of revenue relative to revenue can be sustained in future quarters.