EW

Edwards Lifesciences Corporation stock research

Sep 30, 2023

FY2023 Q3

Edwards Lifesciences (EW) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter and remained nearly stable versus the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter and remained nearly stable versus the year-ago period.

  • The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue.
  • Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter last year, revenue and gross profit were lower, while gross margin was essentially unchanged.

Gross margin snapshot

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

Gross margin

80.9%

Gross profit

$978.9M

Revenue

$1.2B

Cost of revenue

$250.6M

Quarter-over-quarter change

+1.2 pts

Year-over-year change

+0.1 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%
Jun 30, 2023$1.3B$1.0B$256.9M79.7%
Sep 30, 2023$1.2B$978.9M$250.6M80.9%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

+1.2 pts

Year-over-year change

Sep 30, 2022

+0.1 pts

What the margin says

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

The gross margin improvement from the prior quarter was driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue.

Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Versus the same quarter last year, revenue and gross profit were lower, while gross margin was essentially unchanged.

Monitor whether the trend of declining revenue can stabilize while maintaining or improving gross margin.

EW Gross Margin — Quarter Ended Sep 30, 2023