EQT Corporation stock research
FY2023 Q1
EQT (EQT) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior year period, leading to a lower gross profit and a decline in gross margin. Cost of revenue remained relatively stable compared with both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased from the prior year period, leading to a lower gross profit and a decline in gross margin. Cost of revenue remained relatively stable compared with both the preceding quarter and the same quarter last year.
- The most observable margin driver is the stable cost of revenue, which did not follow the revenue decline. This stability partially offset the downward pressure on gross margin from lower revenue.
- Compared with the preceding quarter, revenue turned from negative to positive and gross profit also became positive, while gross margin moved from an anomalous positive value to a lower level. Compared with the same quarter one year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was essentially flat.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.9%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$515.0M
Quarter-over-quarter change
n/a
Year-over-year change
-7.4 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 | $1.8B | $1.3B | $515.0M | 71.9% |
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
-7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the stable cost of revenue, which did not follow the revenue decline. This stability partially offset the downward pressure on gross margin from lower revenue.
Compared with the preceding quarter, revenue turned from negative to positive and gross profit also became positive, while gross margin moved from an anomalous positive value to a lower level. Compared with the same quarter one year ago, revenue, gross profit, and gross margin were all lower, while cost of revenue was essentially flat.
Monitor whether revenue recovers toward prior levels, as cost stability alone may not sustain gross margin if revenue continues to decline.