CT

Corteva, Inc. stock research

Jun 30, 2024

FY2024 Q2

Corteva (CTVA) Gross Margin — Quarter Ended Jun 30, 2024

Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was lower than a year ago but higher than the previous quarter.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was lower than a year ago but higher than the previous quarter.

  • The strongest observable margin driver is the gross margin improvement from the prior quarter, supported by a larger increase in gross profit relative to revenue. This suggests a favorable shift in the relationship between revenue and cost of revenue.
  • Compared to the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

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

Gross margin

52.3%

Gross profit

$3.2B

Revenue

$6.1B

Cost of revenue

$2.9B

Quarter-over-quarter change

+9.0 pts

Year-over-year change

+4.2 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$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%
Jun 30, 2024$6.1B$3.2B$2.9B52.3%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+9.0 pts

Year-over-year change

Jun 30, 2023

+4.2 pts

What the margin says

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

The strongest observable margin driver is the gross margin improvement from the prior quarter, supported by a larger increase in gross profit relative to revenue. This suggests a favorable shift in the relationship between revenue and cost of revenue.

Compared to the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Monitor the trend in cost of revenue, which increased sequentially despite the year-over-year decline.