Eaton Corporation plc stock research
FY2024 Q1
Eaton (ETN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue grew relative to both the prior quarter and the same quarter a year earlier, while gross profit rose compared to a year ago but was unchanged from the prior quarter. Gross margin improved year-over-year but weakened slightly versus the preceding quarter, reflecting a mixed pattern in the relationship among revenue, cost of revenue, and gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue grew relative to both the prior quarter and the same quarter a year earlier, while gross profit rose compared to a year ago but was unchanged from the prior quarter. Gross margin improved year-over-year but weakened slightly versus the preceding quarter, reflecting a mixed pattern in the relationship among revenue, cost of revenue, and gross profit.
- The expansion in gross margin from a year ago is the strongest observable driver, supported by revenue growth that outpaced the increase in cost of revenue over that period. Compared to the prior quarter, however, cost of revenue remained stable while revenue edged lower, leading to the marginal weakening.
- Versus the immediately preceding quarter, revenue was slightly lower, cost of revenue was unchanged, and gross profit was flat, resulting in a minor weakening of gross margin. Compared to the same quarter one year earlier, gross margin was notably higher, driven by revenue growth that exceeded the rise in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.3%
Gross profit
$2.2B
Revenue
$5.9B
Cost of revenue
$3.7B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $5.9B | $2.1B | $3.7B | 36.1% |
| Sep 30, 2023 | $5.9B | $2.2B | $3.7B | 37.3% |
| Dec 31, 2023 | $6.0B | $2.2B | $3.7B | 37.5% |
| Mar 31, 2024 | $5.9B | $2.2B | $3.7B | 37.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.1 pts
Year-over-year change
Mar 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The expansion in gross margin from a year ago is the strongest observable driver, supported by revenue growth that outpaced the increase in cost of revenue over that period. Compared to the prior quarter, however, cost of revenue remained stable while revenue edged lower, leading to the marginal weakening.
Versus the immediately preceding quarter, revenue was slightly lower, cost of revenue was unchanged, and gross profit was flat, resulting in a minor weakening of gross margin. Compared to the same quarter one year earlier, gross margin was notably higher, driven by revenue growth that exceeded the rise in cost of revenue.
Monitor whether the cost of revenue trajectory can align with revenue direction to sustain or improve gross margin.