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Dover Corporation stock research

Sep 30, 2024

FY2024 Q3

Dover (DOV) Gross Margin — Quarter Ended Sep 30, 2024

Revenue was unchanged compared to the same quarter last year but increased from the prior quarter. Gross profit rose from both prior periods, while cost of revenue held steady; the resulting gross margin improved from a year ago but weakened slightly versus the previous quarter.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue was unchanged compared to the same quarter last year but increased from the prior quarter. Gross profit rose from both prior periods, while cost of revenue held steady; the resulting gross margin improved from a year ago but weakened slightly versus the previous quarter.

  • Gross profit growth outpaced revenue changes when compared year over year, lifting the margin. The margin was essentially stable sequentially despite a higher revenue base.
  • Gross margin was higher than the same quarter one year earlier but fractionally lower than the immediately preceding quarter. Cost of revenue was similar across all three periods, so the margin movement was driven primarily by gross profit relative to revenue.

Gross margin snapshot

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

Gross margin

38.5%

Gross profit

$763.2M

Revenue

$2.0B

Cost of revenue

$1.2B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.9B$718.9M$1.2B37.7%
Mar 31, 2024$1.9B$697.2M$1.2B37.0%
Jun 30, 2024$1.9B$752.5M$1.2B38.6%
Sep 30, 2024$2.0B$763.2M$1.2B38.5%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-0.1 pts

Year-over-year change

Sep 30, 2023

+0.7 pts

What the margin says

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

Gross profit growth outpaced revenue changes when compared year over year, lifting the margin. The margin was essentially stable sequentially despite a higher revenue base.

Gross margin was higher than the same quarter one year earlier but fractionally lower than the immediately preceding quarter. Cost of revenue was similar across all three periods, so the margin movement was driven primarily by gross profit relative to revenue.

Monitor whether revenue growth can be sustained without a proportional increase in cost of revenue.