Emerson Electric Co. stock research
FY2023 Q3
Emerson Electric (EMR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting stronger profitability from the same revenue base.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting stronger profitability from the same revenue base.
- The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue unchanged. This indicates that the company generated higher profit per dollar of revenue without increasing input costs.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was stable, leading to an improved gross margin. Versus the same quarter last year, all metrics were higher, with gross margin also showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.5%
Gross profit
$2.0B
Revenue
$3.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+4.8 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% |
| Jun 30, 2023 | $3.9B | $2.0B | $2.0B | 50.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.6 pts
Year-over-year change
Jun 30, 2022
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue unchanged. This indicates that the company generated higher profit per dollar of revenue without increasing input costs.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was stable, leading to an improved gross margin. Versus the same quarter last year, all metrics were higher, with gross margin also showing improvement.
Monitor whether cost of revenue remains stable in future quarters, as it was a key factor in the current margin improvement.