CO

The Cooper Companies, Inc. stock research

Oct 31, 2023

FY2023 Q4

The Cooper Companies (COO) Gross Margin — Quarter Ended Oct 31, 2023

Revenue and gross profit decreased slightly from the prior quarter but increased compared to the same quarter last year. Cost of revenue rose marginally from the prior quarter and more substantially from the prior year, resulting in a gross margin that weakened sequentially but improved year over year.

Gross margin takeaway

Quarter ended Oct 31, 2023 · FY2023 Q4

Revenue and gross profit decreased slightly from the prior quarter but increased compared to the same quarter last year. Cost of revenue rose marginally from the prior quarter and more substantially from the prior year, resulting in a gross margin that weakened sequentially but improved year over year.

  • The year-over-year improvement in gross margin is the most notable change, as the margin expanded from the prior year's level despite a slight sequential decline.
  • Compared to the prior quarter, revenue and gross profit were slightly lower, cost of revenue was marginally higher, and gross margin weakened. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue increased but at a slower pace relative to revenue.

Gross margin snapshot

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

Gross margin

65.4%

Gross profit

$606.5M

Revenue

$927.1M

Cost of revenue

$320.6M

Quarter-over-quarter change

-0.2 pts

Year-over-year change

+2.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$858.5M$558.5M$300.0M65.1%
Apr 30, 2023$877.4M$582.9M$294.5M66.4%
Jul 31, 2023$930.2M$610.0M$320.2M65.6%
Oct 31, 2023$927.1M$606.5M$320.6M65.4%

Quarterly comparisons

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

Previous-quarter change

Jul 31, 2023

-0.2 pts

Year-over-year change

Oct 31, 2022

+2.1 pts

What the margin says

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

The year-over-year improvement in gross margin is the most notable change, as the margin expanded from the prior year's level despite a slight sequential decline.

Compared to the prior quarter, revenue and gross profit were slightly lower, cost of revenue was marginally higher, and gross margin weakened. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue increased but at a slower pace relative to revenue.

The slight sequential decline in gross margin, despite stable revenue, merits monitoring in upcoming quarters.