Corteva, Inc. stock research
FY2023 Q3
Corteva (CTVA) Gross Margin — Quarter Ended Sep 30, 2023
For the quarter, gross margin improved compared to the same quarter a year ago but weakened compared to the immediately preceding quarter. Revenue and cost of revenue both decreased from the prior quarter, with the revenue decline relatively larger, while the year-over-year decrease in cost of revenue exceeded the decrease in revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
For the quarter, gross margin improved compared to the same quarter a year ago but weakened compared to the immediately preceding quarter. Revenue and cost of revenue both decreased from the prior quarter, with the revenue decline relatively larger, while the year-over-year decrease in cost of revenue exceeded the decrease in revenue.
- Compared to the prior quarter, the gross margin decline was associated with a more rapid drop in revenue relative to the drop in cost of revenue. Year over year, the gross margin improvement was associated with a greater reduction in cost of revenue than in revenue.
- Gross margin was higher than the same period last year but lower than the preceding quarter. Revenue and cost of revenue both decreased sequentially and year over year, with the sequential revenue decline outpacing the cost decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.4%
Gross profit
$944.0M
Revenue
$2.6B
Cost of revenue
$1.6B
Quarter-over-quarter change
-11.7 pts
Year-over-year change
+4.1 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $4.9B | $2.1B | $2.8B | 43.3% |
| Jun 30, 2023 | $6.0B | $2.9B | $3.1B | 48.1% |
| Sep 30, 2023 | $2.6B | $944.0M | $1.6B | 36.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-11.7 pts
Year-over-year change
Sep 30, 2022
+4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared to the prior quarter, the gross margin decline was associated with a more rapid drop in revenue relative to the drop in cost of revenue. Year over year, the gross margin improvement was associated with a greater reduction in cost of revenue than in revenue.
Gross margin was higher than the same period last year but lower than the preceding quarter. Revenue and cost of revenue both decreased sequentially and year over year, with the sequential revenue decline outpacing the cost decline.
Monitor the relative movement of revenue and cost of revenue in future quarters, as the gross margin is sensitive to their proportional changes.