Edwards Lifesciences Corporation stock research
FY2024 Q1
Edwards Lifesciences (EW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue was higher sequentially and lower year over year, resulting in a gross margin that weakened from both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue was higher sequentially and lower year over year, resulting in a gross margin that weakened from both the prior quarter and the year-ago quarter.
- The gross margin weakened sequentially and year over year, driven by a higher cost of revenue relative to revenue compared to both periods.
- Compared to the immediately preceding quarter, revenue was stable while cost of revenue was higher, causing gross margin to weaken. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was lower, yet gross margin still weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.4%
Gross profit
$1.0B
Revenue
$1.3B
Cost of revenue
$286.9M
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-2.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.2B | $992.3M | $329.5M | 81.2% |
| Jun 30, 2023 | $1.3B | $1.0B | $256.9M | 79.7% |
| Sep 30, 2023 | $1.2B | $978.9M | $250.6M | 80.9% |
| Mar 31, 2024 | $1.3B | $1.0B | $286.9M | 78.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.4 pts
Year-over-year change
Mar 31, 2023
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year over year, driven by a higher cost of revenue relative to revenue compared to both periods.
Compared to the immediately preceding quarter, revenue was stable while cost of revenue was higher, causing gross margin to weaken. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was lower, yet gross margin still weakened.
Monitor the trajectory of cost of revenue relative to revenue, as it increased sequentially despite stable revenue.