EQT Corporation stock research
FY2023 Q4
EQT (EQT) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased while cost of revenue remained nearly unchanged, leading to a higher gross profit and a significantly improved gross margin. Compared to the prior quarter, gross margin strengthened; versus the same quarter a year ago, revenue and gross profit turned positive, resulting in a gross margin that is lower but based on fundamentally different figures.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased while cost of revenue remained nearly unchanged, leading to a higher gross profit and a significantly improved gross margin. Compared to the prior quarter, gross margin strengthened; versus the same quarter a year ago, revenue and gross profit turned positive, resulting in a gross margin that is lower but based on fundamentally different figures.
- The strongest observable driver was the combination of revenue growth and stable cost of revenue, which elevated gross profit and margin.
- Gross margin improved from the prior quarter, as revenue rose more than cost of revenue. The year-ago quarter had negative revenue and gross profit, making its gross margin not directly comparable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$1.5B
Revenue
$2.0B
Cost of revenue
$564.3M
Quarter-over-quarter change
+19.2 pts
Year-over-year change
-53.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.8B | $1.3B | $515.0M | 71.9% |
| Jun 30, 2023 | $848.3M | $325.2M | $523.2M | 38.3% |
| Sep 30, 2023 | $1.2B | $631.3M | $554.8M | 53.2% |
| Dec 31, 2023 | $2.0B | $1.5B | $564.3M | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+19.2 pts
Year-over-year change
Dec 31, 2022
-53.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the combination of revenue growth and stable cost of revenue, which elevated gross profit and margin.
Gross margin improved from the prior quarter, as revenue rose more than cost of revenue. The year-ago quarter had negative revenue and gross profit, making its gross margin not directly comparable.
Monitor the trend of cost of revenue relative to revenue, as it remained nearly unchanged despite a large increase in revenue.