Quest Diagnostics Incorporated stock research
FY2024 Q3
Quest Diagnostics (DGX) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier. However, cost of revenue increased at a greater rate, resulting in a gross margin that weakened compared to both periods.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier. However, cost of revenue increased at a greater rate, resulting in a gross margin that weakened compared to both periods.
- The primary observable margin driver is the change in the proportion of cost of revenue to revenue, which increased this quarter relative to both prior periods.
- Sequentially, revenue rose while gross margin fell; year over year, the same pattern occurred with revenue higher and gross margin lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$811.0M
Revenue
$2.5B
Cost of revenue
$1.7B
Quarter-over-quarter change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $2.5B | $811.0M | $1.7B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is the change in the proportion of cost of revenue to revenue, which increased this quarter relative to both prior periods.
Sequentially, revenue rose while gross margin fell; year over year, the same pattern occurred with revenue higher and gross margin lower.
Monitor the trend of cost of revenue relative to revenue in future quarters, as it is the key factor behind the margin movement.