DO

Dow Inc. stock research

Jun 30, 2024

FY2024 Q2

Dow (DOW) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was slightly higher than the prior quarter but lower than a year ago. Gross profit was stable compared with the prior quarter but lower than a year ago, resulting in a gross margin that improved sequentially but weakened year over year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was slightly higher than the prior quarter but lower than a year ago. Gross profit was stable compared with the prior quarter but lower than a year ago, resulting in a gross margin that improved sequentially but weakened year over year.

  • The gross margin improved sequentially as gross profit remained stable while revenue increased slightly. Compared with the same quarter a year earlier, gross profit declined more sharply than revenue, causing the margin to weaken.
  • Sequentially, gross margin was higher. Year over year, gross margin was lower.

Gross margin snapshot

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

Gross margin

12.1%

Gross profit

$1.3B

Revenue

$10.9B

Cost of revenue

$9.6B

Quarter-over-quarter change

+0.3 pts

Year-over-year change

-1.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$10.7B$1.1B$9.6B10.6%
Dec 31, 2023$10.6B$975.0M$9.6B9.2%
Mar 31, 2024$10.8B$1.3B$9.5B11.9%
Jun 30, 2024$10.9B$1.3B$9.6B12.1%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+0.3 pts

Year-over-year change

Jun 30, 2023

-1.4 pts

What the margin says

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

The gross margin improved sequentially as gross profit remained stable while revenue increased slightly. Compared with the same quarter a year earlier, gross profit declined more sharply than revenue, causing the margin to weaken.

Sequentially, gross margin was higher. Year over year, gross margin was lower.

Monitor the trend of cost of revenue relative to revenue, as it directly affects gross profit and margin.