Emerson Electric Co. stock research
FY2025 Q1
Emerson Electric (EMR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross margin improved compared to both periods, driven by a reduction in cost of revenue that outpaced revenue changes.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross margin improved compared to both periods, driven by a reduction in cost of revenue that outpaced revenue changes.
- The gross margin improvement was primarily associated with a larger proportional decline in cost of revenue relative to revenue, especially when compared to the prior quarter.
- Compared to the previous quarter, revenue decreased while gross profit decreased less proportionally, resulting in a higher gross margin. Versus the year-ago quarter, revenue increased, gross profit increased more, and cost of revenue decreased, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.5%
Gross profit
$2.2B
Revenue
$4.2B
Cost of revenue
$1.9B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+7.0 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $4.1B | $1.9B | $2.2B | 46.5% |
| Mar 31, 2024 | $4.4B | $2.3B | $2.1B | 52.2% |
| Jun 30, 2024 | $4.4B | $2.3B | $2.1B | 52.8% |
| Dec 31, 2024 | $4.2B | $2.2B | $1.9B | 53.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.7 pts
Year-over-year change
Dec 31, 2023
+7.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was primarily associated with a larger proportional decline in cost of revenue relative to revenue, especially when compared to the prior quarter.
Compared to the previous quarter, revenue decreased while gross profit decreased less proportionally, resulting in a higher gross margin. Versus the year-ago quarter, revenue increased, gross profit increased more, and cost of revenue decreased, leading to a higher gross margin.
Monitor whether the cost of revenue can sustain its lower level relative to revenue in upcoming quarters.