Quest Diagnostics Incorporated stock research
FY2024 Q2
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Gross profit improved sequentially, leading to a higher gross margin, while the year-over-year comparison shows lower gross profit and a weakened margin despite revenue growth.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Gross profit improved sequentially, leading to a higher gross margin, while the year-over-year comparison shows lower gross profit and a weakened margin despite revenue growth.
- Gross margin this quarter was higher than the immediately preceding quarter as gross profit grew faster than cost of revenue. The strongest observable driver was the sequential improvement in gross margin from the prior quarter.
- Compared to the prior quarter, revenue was essentially stable while gross profit increased and gross margin improved. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, resulting in a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.5%
Gross profit
$804.0M
Revenue
$2.4B
Cost of revenue
$1.6B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $2.3B | $754.0M | $1.5B | 32.9% |
| Dec 31, 2023 | $2.3B | $736.0M | $1.6B | 32.2% |
| Mar 31, 2024 | $2.4B | $771.0M | $1.6B | 32.6% |
| Jun 30, 2024 | $2.4B | $804.0M | $1.6B | 33.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.0 pts
Year-over-year change
Jun 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin this quarter was higher than the immediately preceding quarter as gross profit grew faster than cost of revenue. The strongest observable driver was the sequential improvement in gross margin from the prior quarter.
Compared to the prior quarter, revenue was essentially stable while gross profit increased and gross margin improved. Versus the same quarter one year earlier, revenue was higher but gross profit was lower, resulting in a weaker gross margin.
Monitor whether the sequential gross margin improvement can continue given the year-over-year decline in gross margin despite revenue growth.