Quest Diagnostics Incorporated stock research
FY2023 Q1
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue remained stable compared to the immediately preceding quarter, while gross profit increased slightly, resulting in a modest improvement in gross margin. Compared to the same quarter one year earlier, revenue declined and cost of revenue held relatively steady, leading to a lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue remained stable compared to the immediately preceding quarter, while gross profit increased slightly, resulting in a modest improvement in gross margin. Compared to the same quarter one year earlier, revenue declined and cost of revenue held relatively steady, leading to a lower gross profit and a weakened gross margin.
- The gross margin improved quarter over quarter despite stable revenue, driven by a slight increase in gross profit relative to cost of revenue. The year-over-year comparison shows that the decline in gross margin was primarily due to lower revenue with cost of revenue remaining relatively unchanged.
- Sequentially, gross margin improved from the prior quarter, while revenue was unchanged. From the same quarter one year ago, both revenue and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.1%
Gross profit
$771.0M
Revenue
$2.3B
Cost of revenue
$1.6B
Quarter-over-quarter change
n/a
Year-over-year change
-3.9 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 | $2.3B | $771.0M | $1.6B | 33.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved quarter over quarter despite stable revenue, driven by a slight increase in gross profit relative to cost of revenue. The year-over-year comparison shows that the decline in gross margin was primarily due to lower revenue with cost of revenue remaining relatively unchanged.
Sequentially, gross margin improved from the prior quarter, while revenue was unchanged. From the same quarter one year ago, both revenue and gross margin were lower.
Monitor whether the year-over-year decline in revenue, combined with stable cost of revenue, continues to pressure gross profit and gross margin.