Edwards Lifesciences Corporation stock research
FY2023 Q2
Edwards Lifesciences (EW) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to the prior quarter but decreased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined on both comparisons, and gross margin weakened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to the prior quarter but decreased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined on both comparisons, and gross margin weakened sequentially and year-over-year.
- The strongest observable driver is the relationship between revenue and gross profit growth: revenue rose while gross profit increased by a smaller amount, leading to margin compression despite a lower cost of revenue.
- Compared to the prior quarter, revenue was higher but gross margin was lower, as cost of revenue declined more sharply than gross profit increased. Compared to the same quarter last year, revenue and gross profit were both lower, while cost of revenue was also lower, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.7%
Gross profit
$1.0B
Revenue
$1.3B
Cost of revenue
$256.9M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-0.7 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 | $1.2B | $992.3M | $329.5M | 81.2% |
| Jun 30, 2023 | $1.3B | $1.0B | $256.9M | 79.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.6 pts
Year-over-year change
Jun 30, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and gross profit growth: revenue rose while gross profit increased by a smaller amount, leading to margin compression despite a lower cost of revenue.
Compared to the prior quarter, revenue was higher but gross margin was lower, as cost of revenue declined more sharply than gross profit increased. Compared to the same quarter last year, revenue and gross profit were both lower, while cost of revenue was also lower, resulting in a lower gross margin.
Monitor the trend in cost of revenue relative to revenue, as its decline did not prevent margin erosion in the current quarter.