Emerson Electric Co. stock research
FY2024 Q2
Emerson Electric (EMR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue declined sequentially and rose more slowly than revenue on a year-over-year basis, resulting in a higher gross margin in both comparisons.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue declined sequentially and rose more slowly than revenue on a year-over-year basis, resulting in a higher gross margin in both comparisons.
- The most observable driver of gross margin improvement was the sequential decline in cost of revenue while revenue grew, which widened the gross profit margin. Year over year, revenue growth outpaced the increase in cost of revenue, contributing to the margin expansion.
- Compared to the prior quarter, revenue increased, cost of revenue decreased, and gross profit rose, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin also improved as cost of revenue grew at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.2%
Gross profit
$2.3B
Revenue
$4.4B
Cost of revenue
$2.1B
Quarter-over-quarter change
+5.7 pts
Year-over-year change
+4.2 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% |
| Mar 31, 2024 | $4.4B | $2.3B | $2.1B | 52.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+5.7 pts
Year-over-year change
Mar 31, 2023
+4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement was the sequential decline in cost of revenue while revenue grew, which widened the gross profit margin. Year over year, revenue growth outpaced the increase in cost of revenue, contributing to the margin expansion.
Compared to the prior quarter, revenue increased, cost of revenue decreased, and gross profit rose, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin also improved as cost of revenue grew at a slower pace.
Monitor the integration of the recently acquired Test & Measurement segment, as its contribution to revenue and cost structure may influence future gross margin trends.