EQ

EQT Corporation stock research

Jun 30, 2024

FY2024 Q2

EQT (EQT) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was nearly unchanged, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved as cost of revenue rose less than revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue was nearly unchanged, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, and gross margin improved as cost of revenue rose less than revenue.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue; in the current quarter, revenue declined sharply while cost of revenue remained stable, compressing gross margin.
  • Gross margin weakened from the prior quarter but improved from the same quarter one year earlier. Revenue and gross profit were lower sequentially but higher year-over-year.

Gross margin snapshot

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

Gross margin

43.0%

Gross profit

$409.4M

Revenue

$952.5M

Cost of revenue

$543.1M

Quarter-over-quarter change

-18.4 pts

Year-over-year change

+4.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.2B$631.3M$554.8M53.2%
Dec 31, 2023$2.0B$1.5B$564.3M72.4%
Mar 31, 2024$1.4B$867.1M$545.2M61.4%
Jun 30, 2024$952.5M$409.4M$543.1M43.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-18.4 pts

Year-over-year change

Jun 30, 2023

+4.7 pts

What the margin says

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

The strongest observable margin driver is the relationship between revenue and cost of revenue; in the current quarter, revenue declined sharply while cost of revenue remained stable, compressing gross margin.

Gross margin weakened from the prior quarter but improved from the same quarter one year earlier. Revenue and gross profit were lower sequentially but higher year-over-year.

Monitor the trend in cost of revenue relative to revenue, as stable costs amid declining revenue directly pressure gross margin.