Dover Corporation stock research
FY2024 Q2
Dover (DOV) Gross Margin — Quarter Ended Jun 30, 2024
Revenue in the current quarter was stable compared to the immediately preceding quarter, while gross profit improved and cost of revenue remained similar, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was slightly lower, and gross margin was higher.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue in the current quarter was stable compared to the immediately preceding quarter, while gross profit improved and cost of revenue remained similar, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue and cost of revenue were lower, gross profit was slightly lower, and gross margin was higher.
- Gross margin improved both sequentially and year-over-year, driven by a higher gross profit relative to revenue despite lower absolute revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
- Compared to the previous quarter, gross margin improved from the prior level. Compared to the same quarter last year, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.6%
Gross profit
$752.5M
Revenue
$1.9B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+2.5 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 | $2.0B | $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% |
| Jun 30, 2024 | $1.9B | $752.5M | $1.2B | 38.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.6 pts
Year-over-year change
Jun 30, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved both sequentially and year-over-year, driven by a higher gross profit relative to revenue despite lower absolute revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
Compared to the previous quarter, gross margin improved from the prior level. Compared to the same quarter last year, gross margin was also higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline underpinned the margin expansion.