The Cooper Companies, Inc. stock research
FY2024 Q1
The Cooper Companies (COO) Gross Margin — Quarter Ended Jan 31, 2024
Revenue increased and cost of revenue declined, leading to a larger gross profit and an improved gross margin compared to both the preceding quarter and the same quarter one year earlier. The relationship among the four metrics reflects that gross profit growth outpaced revenue growth, while cost of revenue decreased in absolute terms.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q1
Revenue increased and cost of revenue declined, leading to a larger gross profit and an improved gross margin compared to both the preceding quarter and the same quarter one year earlier. The relationship among the four metrics reflects that gross profit growth outpaced revenue growth, while cost of revenue decreased in absolute terms.
- The strongest observable margin driver is the reduction in cost of revenue from the prior quarter, which directly boosted gross profit and margin. Both revenue growth and cost containment contributed, but cost reduction had a more direct impact on margin expansion.
- Compared to the immediately preceding quarter, gross margin was higher, driven by both higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, as revenue grew at a faster pace relative to the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.0%
Gross profit
$623.8M
Revenue
$931.6M
Cost of revenue
$307.8M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $877.4M | $582.9M | $294.5M | 66.4% |
| Jul 31, 2023 | $930.2M | $610.0M | $320.2M | 65.6% |
| Oct 31, 2023 | $927.1M | $606.5M | $320.6M | 65.4% |
| Jan 31, 2024 | $931.6M | $623.8M | $307.8M | 67.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
+1.5 pts
Year-over-year change
Jan 31, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue from the prior quarter, which directly boosted gross profit and margin. Both revenue growth and cost containment contributed, but cost reduction had a more direct impact on margin expansion.
Compared to the immediately preceding quarter, gross margin was higher, driven by both higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, as revenue grew at a faster pace relative to the increase in cost of revenue.
Monitor whether cost of revenue remains stable or declines further in upcoming quarters, as it was the primary factor behind the current margin improvement.