Charles River Laboratories International, Inc. stock research
FY2024 Q3
Charles River Laboratories International (CRL) Gross Margin — Quarter Ended Sep 28, 2024
Revenue remained stable at approximately the same level as the prior quarter and the year-ago quarter. Gross profit was lower than both periods, while cost of revenue was also lower, resulting in a gross margin that improved slightly from the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue remained stable at approximately the same level as the prior quarter and the year-ago quarter. Gross profit was lower than both periods, while cost of revenue was also lower, resulting in a gross margin that improved slightly from the prior quarter but weakened compared to the same quarter last year.
- The gross margin movement was most directly associated with changes in the cost of revenue. The sequential improvement reflected a larger decrease in cost of revenue relative to the change in gross profit, while the year-over-year decline was due to a greater reduction in gross profit relative to cost of revenue.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a decrease in cost of revenue that outweighed the decrease in gross profit. Compared to the same quarter one year ago, gross margin was lower, as gross profit declined more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.6%
Gross profit
$349.0M
Revenue
$1.0B
Cost of revenue
$660.7M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $1.0B | $361.8M | $664.8M | 35.2% |
| Mar 30, 2024 | $1.0B | $344.8M | $666.7M | 34.1% |
| Jun 29, 2024 | $1.0B | $353.7M | $672.4M | 34.5% |
| Sep 28, 2024 | $1.0B | $349.0M | $660.7M | 34.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+0.1 pts
Year-over-year change
Sep 30, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin movement was most directly associated with changes in the cost of revenue. The sequential improvement reflected a larger decrease in cost of revenue relative to the change in gross profit, while the year-over-year decline was due to a greater reduction in gross profit relative to cost of revenue.
Compared to the immediately preceding quarter, gross margin was higher, driven by a decrease in cost of revenue that outweighed the decrease in gross profit. Compared to the same quarter one year ago, gross margin was lower, as gross profit declined more than cost of revenue.
Monitor the trend in cost of revenue relative to gross profit, as the relationship between these two metrics has shifted across periods.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Charles River Laboratories International, Inc. (CRL) | 34.6% |