CO

Cencora, Inc. stock research

Jun 30, 2024

FY2024 Q3

Cencora (COR) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased while gross profit decreased compared to the prior quarter, resulting in a lower gross margin. Compared to the same quarter last year, both revenue and gross profit grew, but gross margin declined.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q3

Revenue increased while gross profit decreased compared to the prior quarter, resulting in a lower gross margin. Compared to the same quarter last year, both revenue and gross profit grew, but gross margin declined.

  • The most observable driver is that gross profit decreased relative to revenue from the prior quarter, as cost of revenue increased.
  • Gross margin weakened both sequentially and year-over-year.

Gross margin snapshot

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

Gross margin

3.2%

Gross profit

$2.4B

Revenue

$74.2B

Cost of revenue

$71.8B

Quarter-over-quarter change

-0.5 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.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$68.9B$2.3B$66.7B3.3%
Dec 31, 2023$72.3B$2.5B$69.8B3.4%
Mar 31, 2024$68.4B$2.5B$65.9B3.7%
Jun 30, 2024$74.2B$2.4B$71.8B3.2%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.5 pts

Year-over-year change

Jun 30, 2023

-0.1 pts

What the margin says

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

The most observable driver is that gross profit decreased relative to revenue from the prior quarter, as cost of revenue increased.

Gross margin weakened both sequentially and year-over-year.

Monitor the trend in cost of revenue relative to revenue.