Eaton Corporation plc stock research
FY2024 Q2
Eaton (ETN) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, as the rise in gross profit exceeded the rise in cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, as the rise in gross profit exceeded the rise in cost of revenue.
- The strongest observable margin driver was the slower increase in cost of revenue relative to revenue, which enabled gross profit to expand more rapidly and lifted the gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue also increased but at a lesser rate, resulting in a stronger gross margin. The same pattern held when compared to the same quarter one year earlier, with gross margin improving from a lower level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.0%
Gross profit
$2.4B
Revenue
$6.3B
Cost of revenue
$3.9B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $6.3B | $2.4B | $3.9B | 38.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the slower increase in cost of revenue relative to revenue, which enabled gross profit to expand more rapidly and lifted the gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue also increased but at a lesser rate, resulting in a stronger gross margin. The same pattern held when compared to the same quarter one year earlier, with gross margin improving from a lower level.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship will directly affect gross margin.