DD

DuPont de Nemours, Inc. stock research

Dec 31, 2023

FY2023 Q4

DuPont de Nemours (DD) Gross Margin — Quarter Ended Dec 31, 2023

Revenue, gross profit, and cost of revenue were all negative in the current quarter, contrasting with positive amounts in the preceding quarter and the same quarter a year earlier. Despite the negative revenue, gross margin improved compared with both the immediately preceding quarter and the same quarter a year earlier, indicating a change in the relationship among these metrics.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue, gross profit, and cost of revenue were all negative in the current quarter, contrasting with positive amounts in the preceding quarter and the same quarter a year earlier. Despite the negative revenue, gross margin improved compared with both the immediately preceding quarter and the same quarter a year earlier, indicating a change in the relationship among these metrics.

  • Gross margin for the current quarter is lower than in the immediately preceding quarter but higher than in the same quarter one year earlier, driven by a shift in the components. The strongest observable driver is the change in the absolute levels of revenue and cost of revenue, which turned negative while maintaining a margin that sits between the two comparison periods.
  • Revenue and gross profit have weakened substantially compared with both the prior quarter and the year-ago quarter, turning from positive to negative. Cost of revenue also flipped to a negative figure, while gross margin improved relative to the year-ago level but declined sequentially.

Gross margin snapshot

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

Gross margin

40.3%

Gross profit

-$1.0B

Revenue

-$2.6B

Cost of revenue

-$1.5B

Quarter-over-quarter change

+4.2 pts

Year-over-year change

+6.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.0B$1.0B$2.0B34.3%
Jun 30, 2023$3.1B$1.1B$2.0B34.4%
Sep 30, 2023$3.1B$1.1B$2.0B36.1%
Dec 31, 2023-$2.6B-$1.0B-$1.5B40.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+4.2 pts

Year-over-year change

Dec 31, 2022

+6.3 pts

What the margin says

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

Gross margin for the current quarter is lower than in the immediately preceding quarter but higher than in the same quarter one year earlier, driven by a shift in the components. The strongest observable driver is the change in the absolute levels of revenue and cost of revenue, which turned negative while maintaining a margin that sits between the two comparison periods.

Revenue and gross profit have weakened substantially compared with both the prior quarter and the year-ago quarter, turning from positive to negative. Cost of revenue also flipped to a negative figure, while gross margin improved relative to the year-ago level but declined sequentially.

Monitor the sign and magnitude of revenue and cost of revenue in the next quarter to assess whether the negative figures are an isolated occurrence or a continuing pattern.