DO

Dover Corporation stock research

Dec 31, 2024

FY2024 Q4

Dover (DOV) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and cost of revenue were both lower than the prior quarter, resulting in a slightly lower gross profit but a marginally improved gross margin. Compared to the same quarter one year earlier, revenue was stable while cost of revenue was lower, leading to a higher gross profit and an improved gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and cost of revenue were both lower than the prior quarter, resulting in a slightly lower gross profit but a marginally improved gross margin. Compared to the same quarter one year earlier, revenue was stable while cost of revenue was lower, leading to a higher gross profit and an improved gross margin.

  • The gross margin improved relative to both the prior quarter and the same quarter last year. The relationship between revenue and cost of revenue shows that cost of revenue declined at a faster rate than revenue when compared sequentially, and remained lower year over year while revenue held steady.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was essentially flat, gross profit was higher, cost of revenue was lower, and gross margin was higher.

Gross margin snapshot

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

Gross margin

38.6%

Gross profit

$745.7M

Revenue

$1.9B

Cost of revenue

$1.2B

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+0.9 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, 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%
Dec 31, 2024$1.9B$745.7M$1.2B38.6%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

+0.2 pts

Year-over-year change

Dec 31, 2023

+0.9 pts

What the margin says

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

The gross margin improved relative to both the prior quarter and the same quarter last year. The relationship between revenue and cost of revenue shows that cost of revenue declined at a faster rate than revenue when compared sequentially, and remained lower year over year while revenue held steady.

Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was essentially flat, gross profit was higher, cost of revenue was lower, and gross margin was higher.

Monitor the trend in cost of revenue relative to revenue, as its decline contributed to margin improvement despite lower revenue.