DO

Dover Corporation stock research

Sep 30, 2023

FY2023 Q3

Dover (DOV) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue also declined. Gross margin improved sequentially and compared to the year-ago period, indicating that the reduction in cost of revenue outpaced the decline in revenue.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue also declined. Gross margin improved sequentially and compared to the year-ago period, indicating that the reduction in cost of revenue outpaced the decline in revenue.

  • The gross margin strengthened compared to both the immediate prior quarter and the year-ago quarter, driven by a proportionally larger decline in cost of revenue relative to revenue.
  • Sequentially, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was again higher.

Gross margin snapshot

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

Gross margin

37.8%

Gross profit

$739.4M

Revenue

$2.0B

Cost of revenue

$1.2B

Quarter-over-quarter change

+1.6 pts

Year-over-year change

+2.0 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%
Jun 30, 2023$2.1B$758.8M$1.3B36.1%
Sep 30, 2023$2.0B$739.4M$1.2B37.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+1.6 pts

Year-over-year change

Sep 30, 2022

+2.0 pts

What the margin says

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

The gross margin strengthened compared to both the immediate prior quarter and the year-ago quarter, driven by a proportionally larger decline in cost of revenue relative to revenue.

Sequentially, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was again higher.

Monitor whether the pace of cost reduction can sustain gross margin improvement if revenue continues to decline.

DOV Gross Margin — Quarter Ended Sep 30, 2023