Dover Corporation stock research
FY2024 Q1
Dover (DOV) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to the preceding quarter but lower than the same quarter one year earlier. Gross profit decreased relative to both the prior quarter and the year-ago quarter, while cost of revenue was little changed from the prior quarter but above the year-ago level; gross margin weakened from the preceding quarter yet improved versus the same period last year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to the preceding quarter but lower than the same quarter one year earlier. Gross profit decreased relative to both the prior quarter and the year-ago quarter, while cost of revenue was little changed from the prior quarter but above the year-ago level; gross margin weakened from the preceding quarter yet improved versus the same period last year.
- Gross margin improved versus the year-ago quarter even though gross profit was lower, indicating that cost of revenue decreased at a faster pace than revenue. The strongest observable driver is the year-over-year compression in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin weakened as revenue held steady but gross profit declined. Versus the same quarter one year earlier, gross margin improved despite revenue being lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.0%
Gross profit
$697.2M
Revenue
$1.9B
Cost of revenue
$1.2B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.1B | $758.8M | $1.3B | 36.1% |
| Sep 30, 2023 | $2.0B | $739.4M | $1.2B | 37.8% |
| Dec 31, 2023 | $1.9B | $718.9M | $1.2B | 37.7% |
| Mar 31, 2024 | $1.9B | $697.2M | $1.2B | 37.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.7 pts
Year-over-year change
Mar 31, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved versus the year-ago quarter even though gross profit was lower, indicating that cost of revenue decreased at a faster pace than revenue. The strongest observable driver is the year-over-year compression in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin weakened as revenue held steady but gross profit declined. Versus the same quarter one year earlier, gross margin improved despite revenue being lower.
Monitor gross profit levels in relation to cost of revenue, as the divergence between stable revenue and declining gross profit could signal margin pressure.