EQT Corporation stock research
FY2023 Q2
EQT (EQT) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased sharply compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Consequently, gross profit and gross margin both weakened substantially.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue decreased sharply compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Consequently, gross profit and gross margin both weakened substantially.
- The strongest observable driver of the gross margin change is the disparity between the steep decline in revenue and the persistence of cost of revenue. This divergence compressed the margin.
- Gross margin in the current quarter was lower than in the immediately preceding quarter and much lower than in the same quarter one year earlier. The decline reflects a proportionally larger drop in revenue relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$325.2M
Revenue
$848.3M
Cost of revenue
$523.2M
Quarter-over-quarter change
-33.5 pts
Year-over-year change
-45.6 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% |
| Jun 30, 2023 | $848.3M | $325.2M | $523.2M | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-33.5 pts
Year-over-year change
Jun 30, 2022
-45.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the disparity between the steep decline in revenue and the persistence of cost of revenue. This divergence compressed the margin.
Gross margin in the current quarter was lower than in the immediately preceding quarter and much lower than in the same quarter one year earlier. The decline reflects a proportionally larger drop in revenue relative to cost of revenue.
Monitor transportation and processing costs, which constitute the entire cost of revenue and have remained relatively stable despite revenue declines.