Quest Diagnostics Incorporated stock research
FY2023 Q3
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was unchanged from the prior quarter, but gross profit decreased, leading to a lower gross margin. Cost of revenue remained at a similar level as the previous quarter, while gross profit was also lower than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was unchanged from the prior quarter, but gross profit decreased, leading to a lower gross margin. Cost of revenue remained at a similar level as the previous quarter, while gross profit was also lower than the same quarter last year.
- The primary observable driver of the margin change is the relative movement of cost of revenue compared to revenue; cost of revenue increased while revenue was stable sequentially, and both decreased year over year but at different rates.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.9%
Gross profit
$754.0M
Revenue
$2.3B
Cost of revenue
$1.5B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-2.1 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 | $2.3B | $771.0M | $1.6B | 33.1% |
| Jun 30, 2023 | $2.3B | $792.0M | $1.5B | 33.9% |
| Sep 30, 2023 | $2.3B | $754.0M | $1.5B | 32.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.0 pts
Year-over-year change
Sep 30, 2022
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the relative movement of cost of revenue compared to revenue; cost of revenue increased while revenue was stable sequentially, and both decreased year over year but at different rates.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin declined.
Monitor the trend in cost of revenue relative to revenue, as it directly impacts gross margin; the filing also notes a decrease in net cash from operating activities.