Emerson Electric Co. stock research
FY2023 Q2
Emerson Electric (EMR) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, but cost of revenue grew faster, causing a slight sequential margin decline while year-over-year margin improved. The filing discusses a planned acquisition and a major divestiture.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, but cost of revenue grew faster, causing a slight sequential margin decline while year-over-year margin improved. The filing discusses a planned acquisition and a major divestiture.
- The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue rose at a rate that slightly exceeded revenue growth, compressing the margin sequentially. The year-over-year margin improvement reflects a larger proportionate increase in gross profit relative to revenue from the prior year.
- Gross margin was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.9%
Gross profit
$1.8B
Revenue
$3.8B
Cost of revenue
$2.0B
Quarter-over-quarter change
n/a
Year-over-year change
+3.1 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 | $3.8B | $1.8B | $2.0B | 47.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue: cost of revenue rose at a rate that slightly exceeded revenue growth, compressing the margin sequentially. The year-over-year margin improvement reflects a larger proportionate increase in gross profit relative to revenue from the prior year.
Gross margin was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier.
Monitor the growth rate of cost of revenue relative to revenue, as it directly influenced the margin movement.