Eaton Corporation plc stock research
FY2024 Q4
Eaton (ETN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was slightly lower than the prior quarter, while gross profit held steady, resulting in a marginal improvement in gross margin. Compared to the same quarter a year ago, both revenue and gross profit were higher, and gross margin strengthened notably.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was slightly lower than the prior quarter, while gross profit held steady, resulting in a marginal improvement in gross margin. Compared to the same quarter a year ago, both revenue and gross profit were higher, and gross margin strengthened notably.
- The decrease in cost of revenue, both sequentially and year-over-year, outpaced the change in revenue, supporting the gross margin improvement.
- Compared to the prior quarter, gross margin improved slightly as a lower cost of revenue offset a modest decline in revenue. Compared to the same quarter a year earlier, gross margin was stronger, driven by a higher gross profit on increased revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.9%
Gross profit
$2.4B
Revenue
$6.2B
Cost of revenue
$3.8B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $5.9B | $2.2B | $3.7B | 37.3% |
| Jun 30, 2024 | $6.3B | $2.4B | $3.9B | 38.0% |
| Sep 30, 2024 | $6.3B | $2.4B | $3.9B | 38.6% |
| Dec 31, 2024 | $6.2B | $2.4B | $3.8B | 38.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.4 pts
Year-over-year change
Dec 31, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue, both sequentially and year-over-year, outpaced the change in revenue, supporting the gross margin improvement.
Compared to the prior quarter, gross margin improved slightly as a lower cost of revenue offset a modest decline in revenue. Compared to the same quarter a year earlier, gross margin was stronger, driven by a higher gross profit on increased revenue.
Monitor the trend in cost of revenue relative to revenue, as its decline was the key factor behind the sequential margin improvement.