CO

The Cooper Companies, Inc. stock research

Jul 31, 2024

FY2024 Q3

The Cooper Companies (COO) Gross Margin — Quarter Ended Jul 31, 2024

Revenue, gross profit, and cost of revenue all increased compared to both the preceding quarter and the same quarter one year earlier. Gross margin improved relative to the year-ago quarter but weakened sequentially.

Gross margin takeaway

Quarter ended Jul 31, 2024 · FY2024 Q3

Revenue, gross profit, and cost of revenue all increased compared to both the preceding quarter and the same quarter one year earlier. Gross margin improved relative to the year-ago quarter but weakened sequentially.

  • The most notable driver of the gross margin change was the relationship between revenue and cost of revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, while year-over-year revenue grew more than cost of revenue.
  • Compared to the preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher alongside higher revenue and gross profit.

Gross margin snapshot

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

Gross margin

66.1%

Gross profit

$663.0M

Revenue

$1.0B

Cost of revenue

$339.8M

Quarter-over-quarter change

-0.8 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Oct 31, 2023$927.1M$606.5M$320.6M65.4%
Jan 31, 2024$931.6M$623.8M$307.8M67.0%
Apr 30, 2024$942.6M$631.2M$311.4M67.0%
Jul 31, 2024$1.0B$663.0M$339.8M66.1%

Quarterly comparisons

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

Previous-quarter change

Apr 30, 2024

-0.8 pts

Year-over-year change

Jul 31, 2023

+0.5 pts

What the margin says

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

The most notable driver of the gross margin change was the relationship between revenue and cost of revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, while year-over-year revenue grew more than cost of revenue.

Compared to the preceding quarter, gross margin was lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher alongside higher revenue and gross profit.

Monitor the trend of cost of revenue relative to revenue in upcoming quarters.