EQ

EQT Corporation stock research

Sep 30, 2023

FY2023 Q3

EQT (EQT) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit increased compared to the previous quarter, while cost of revenue rose modestly, leading to an improved gross margin. When compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin weakened.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue and gross profit increased compared to the previous quarter, while cost of revenue rose modestly, leading to an improved gross margin. When compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin weakened.

  • The most observable margin driver was the increase in revenue relative to cost of revenue, which resulted in a higher gross profit and an improved gross margin compared to the prior quarter.
  • Gross margin improved from the prior quarter but was lower than the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

53.2%

Gross profit

$631.3M

Revenue

$1.2B

Cost of revenue

$554.8M

Quarter-over-quarter change

+14.9 pts

Year-over-year change

-32.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.8B$1.3B$515.0M71.9%
Jun 30, 2023$848.3M$325.2M$523.2M38.3%
Sep 30, 2023$1.2B$631.3M$554.8M53.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+14.9 pts

Year-over-year change

Sep 30, 2022

-32.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most observable margin driver was the increase in revenue relative to cost of revenue, which resulted in a higher gross profit and an improved gross margin compared to the prior quarter.

Gross margin improved from the prior quarter but was lower than the same quarter one year earlier.

Monitor the relationship between revenue and cost of revenue, as changes in this ratio directly affect gross margin.

EQT Gross Margin — Quarter Ended Sep 30, 2023