Eaton Corporation plc stock research
FY2023 Q2
Eaton (ETN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, reflecting that revenue grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year, reflecting that revenue grew faster than cost of revenue.
- The improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue when compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, with gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.1%
Gross profit
$2.1B
Revenue
$5.9B
Cost of revenue
$3.7B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+3.4 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 | $5.5B | $1.9B | $3.6B | 34.4% |
| Jun 30, 2023 | $5.9B | $2.1B | $3.7B | 36.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.8 pts
Year-over-year change
Jun 30, 2022
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growing at a faster pace than cost of revenue when compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, with gross margin also improved.
Monitor the relationship between revenue growth and cost of revenue growth in future quarters.