Emerson Electric Co. stock research
FY2024 Q1
Emerson Electric (EMR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit was lower than the prior quarter and higher than a year ago, while cost of revenue was higher than both periods, resulting in a gross margin that weakened sequentially and compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit was lower than the prior quarter and higher than a year ago, while cost of revenue was higher than both periods, resulting in a gross margin that weakened sequentially and compared to the same quarter last year.
- The gross margin weakened compared to both the prior quarter and the same quarter last year, driven by a larger increase in cost of revenue relative to gross profit. Revenue remained stable sequentially, but the cost base expanded, compressing margin.
- Compared to the prior quarter, revenue was stable, gross profit was lower, and cost of revenue was higher, leading to a weaker gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue increased more, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.5%
Gross profit
$1.9B
Revenue
$4.1B
Cost of revenue
$2.2B
Quarter-over-quarter change
-4.0 pts
Year-over-year change
-1.5 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 | $3.8B | $1.8B | $2.0B | 47.9% |
| Jun 30, 2023 | $3.9B | $2.0B | $2.0B | 50.5% |
| Dec 31, 2023 | $4.1B | $1.9B | $2.2B | 46.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-4.0 pts
Year-over-year change
Dec 31, 2022
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened compared to both the prior quarter and the same quarter last year, driven by a larger increase in cost of revenue relative to gross profit. Revenue remained stable sequentially, but the cost base expanded, compressing margin.
Compared to the prior quarter, revenue was stable, gross profit was lower, and cost of revenue was higher, leading to a weaker gross margin. Versus the same quarter last year, revenue and gross profit were higher, but cost of revenue increased more, resulting in a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its increase outpaced revenue growth both sequentially and year-over-year.