DO

Dover Corporation stock research

Mar 31, 2023

FY2023 Q1

Dover (DOV) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and cost of revenue both increased from the previous quarter, with cost of revenue growing at a faster rate, leading to higher gross profit but a lower gross margin. Compared to the same quarter last year, revenue and gross profit were similar, and gross margin was slightly lower, reflecting a near-stable relationship.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and cost of revenue both increased from the previous quarter, with cost of revenue growing at a faster rate, leading to higher gross profit but a lower gross margin. Compared to the same quarter last year, revenue and gross profit were similar, and gross margin was slightly lower, reflecting a near-stable relationship.

  • The ratio of cost of revenue to revenue increased compared to the prior quarter, which compressed gross margin despite higher revenue.
  • Gross margin weakened from the immediately preceding quarter but was only slightly lower than the same quarter one year earlier, showing a mixed performance.

Gross margin snapshot

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

Gross margin

35.9%

Gross profit

$747.0M

Revenue

$2.1B

Cost of revenue

$1.3B

Quarter-over-quarter change

n/a

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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.1B$747.0M$1.3B35.9%

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

-0.3 pts

What the margin says

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

The ratio of cost of revenue to revenue increased compared to the prior quarter, which compressed gross margin despite higher revenue.

Gross margin weakened from the immediately preceding quarter but was only slightly lower than the same quarter one year earlier, showing a mixed performance.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether gross margin pressure persists.