EW

Edwards Lifesciences Corporation stock research

Mar 31, 2023

FY2023 Q1

Edwards Lifesciences (EW) Gross Margin — Quarter Ended Mar 31, 2023

In the current quarter, revenue, gross profit, and cost of revenue all changed from both the preceding quarter and the same quarter one year earlier. Gross margin was higher than the year-ago quarter but lower than the preceding quarter, reflecting shifts in the relationship between revenue and cost of revenue. The filing notes forward-looking statements about the impact of COVID-19 and macroeconomic conditions on the business.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

In the current quarter, revenue, gross profit, and cost of revenue all changed from both the preceding quarter and the same quarter one year earlier. Gross margin was higher than the year-ago quarter but lower than the preceding quarter, reflecting shifts in the relationship between revenue and cost of revenue. The filing notes forward-looking statements about the impact of COVID-19 and macroeconomic conditions on the business.

  • The most observable change in margin was the year-over-year improvement, as gross profit declined less than revenue while cost of revenue increased.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher (changing from a negative figure), and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin was higher.

Gross margin snapshot

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

Gross margin

81.2%

Gross profit

$992.3M

Revenue

$1.2B

Cost of revenue

$329.5M

Quarter-over-quarter change

n/a

Year-over-year change

+3.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.2B$992.3M$329.5M81.2%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+3.6 pts

What the margin says

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

The most observable change in margin was the year-over-year improvement, as gross profit declined less than revenue while cost of revenue increased.

Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher (changing from a negative figure), and gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin was higher.

Monitor the trajectory of cost of revenue, as it increased year-over-year and showed a significant change from the prior quarter.