EQT Corporation stock research
FY2024 Q1
EQT (EQT) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit also declined. The gross margin weakened from the preceding quarter and from the year-ago period, as the reduction in revenue outpaced the change in cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit also declined. The gross margin weakened from the preceding quarter and from the year-ago period, as the reduction in revenue outpaced the change in cost of revenue.
- The gross margin declined from the prior quarter and the year-ago quarter, driven by a larger proportional drop in revenue relative to cost of revenue. The cost of revenue decreased only slightly from the prior quarter and increased compared to the year-ago quarter, while revenue fell more sharply in both comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.4%
Gross profit
$867.1M
Revenue
$1.4B
Cost of revenue
$545.2M
Quarter-over-quarter change
-11.0 pts
Year-over-year change
-10.5 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.4B | $867.1M | $545.2M | 61.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-11.0 pts
Year-over-year change
Mar 31, 2023
-10.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter and the year-ago quarter, driven by a larger proportional drop in revenue relative to cost of revenue. The cost of revenue decreased only slightly from the prior quarter and increased compared to the year-ago quarter, while revenue fell more sharply in both comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were also lower, and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as cost of revenue did not decline proportionally with the revenue decrease.