CT

Corteva, Inc. stock research

Mar 31, 2024

FY2024 Q1

Corteva (CTVA) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit increased from the previous quarter, while cost of revenue also rose, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin remained nearly unchanged.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit increased from the previous quarter, while cost of revenue also rose, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin remained nearly unchanged.

  • The primary driver of the gross margin change was the sequential increase in gross profit relative to revenue, while year-over-year the margin was stable.
  • Sequentially, all three metrics—revenue, cost of revenue, and gross profit—were higher, and gross margin improved. Year-over-year, all three metrics were lower, and gross margin was essentially flat.

Gross margin snapshot

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

Gross margin

43.2%

Gross profit

$1.9B

Revenue

$4.5B

Cost of revenue

$2.5B

Quarter-over-quarter change

+7.1 pts

Year-over-year change

-0.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$6.0B$2.9B$3.1B48.1%
Sep 30, 2023$2.6B$944.0M$1.6B36.4%
Dec 31, 2023$3.7B$1.3B$2.4B36.2%
Mar 31, 2024$4.5B$1.9B$2.5B43.2%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

+7.1 pts

Year-over-year change

Mar 31, 2023

-0.0 pts

What the margin says

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

The primary driver of the gross margin change was the sequential increase in gross profit relative to revenue, while year-over-year the margin was stable.

Sequentially, all three metrics—revenue, cost of revenue, and gross profit—were higher, and gross margin improved. Year-over-year, all three metrics were lower, and gross margin was essentially flat.

Monitor the ratio of gross profit to revenue in future quarters, as it has shown sequential improvement but year-over-year consistency.