The Cooper Companies, Inc. stock research
FY2023 Q3
The Cooper Companies (COO) Gross Margin — Quarter Ended Jul 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jul 31, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but was stable compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting gross margin stability.
- Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew at a faster pace than revenue. Compared to the same quarter last year, gross margin was essentially stable, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$610.0M
Revenue
$930.2M
Cost of revenue
$320.2M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.1 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% |
| Jul 31, 2023 | $930.2M | $610.0M | $320.2M | 65.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-0.9 pts
Year-over-year change
Jul 31, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the same quarter last year, supporting gross margin stability.
Compared to the prior quarter, gross margin was slightly lower as cost of revenue grew at a faster pace than revenue. Compared to the same quarter last year, gross margin was essentially stable, with revenue and cost of revenue both higher.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter compared to the prior quarter contributed to the slight margin weakening.