EMCOR Group, Inc. stock research
FY2023 Q4
EMCOR Group (EME) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both periods, reflecting a stronger relationship between gross profit and revenue.
- The gross margin improvement was driven by gross profit growing faster than revenue, as cost of revenue increased at a slower relative pace.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.0%
Gross profit
$617.7M
Revenue
$3.4B
Cost of revenue
$2.8B
Quarter-over-quarter change
+1.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $2.9B | $436.1M | $2.5B | 15.1% |
| Jun 30, 2023 | $3.0B | $490.1M | $2.6B | 16.1% |
| Sep 30, 2023 | $3.2B | $545.5M | $2.7B | 17.0% |
| Dec 31, 2023 | $3.4B | $617.7M | $2.8B | 18.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.0 pts
Year-over-year change
Dec 31, 2022
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by gross profit growing faster than revenue, as cost of revenue increased at a slower relative pace.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was also higher.
Monitor the trend in cost of revenue relative to revenue, as its slower growth supported the margin improvement.