EW

Edwards Lifesciences Corporation stock research

Sep 30, 2024

FY2024 Q3

Edwards Lifesciences (EW) Gross Margin — Quarter Ended Sep 30, 2024

Revenue was stable compared to the prior quarter, while gross profit improved slightly as cost of revenue declined. Gross margin strengthened relative to the previous quarter but weakened modestly versus the same quarter one year earlier.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue was stable compared to the prior quarter, while gross profit improved slightly as cost of revenue declined. Gross margin strengthened relative to the previous quarter but weakened modestly versus the same quarter one year earlier.

  • The reduction in cost of revenue relative to the prior quarter was the primary observable factor supporting the gross margin improvement, as revenue remained unchanged.
  • Compared to the immediately preceding quarter, gross margin was higher, driven by lower cost of revenue on flat revenue. Versus the same quarter one year earlier, gross margin was lower, as revenue grew but cost of revenue increased at a faster pace.

Gross margin snapshot

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

Gross margin

80.6%

Gross profit

$1.1B

Revenue

$1.4B

Cost of revenue

$262.9M

Quarter-over-quarter change

+0.7 pts

Year-over-year change

-0.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.2B$978.9M$250.6M80.9%
Mar 31, 2024$1.3B$1.0B$286.9M78.4%
Jun 30, 2024$1.4B$1.1B$275.5M79.9%
Sep 30, 2024$1.4B$1.1B$262.9M80.6%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+0.7 pts

Year-over-year change

Sep 30, 2023

-0.3 pts

What the margin says

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

The reduction in cost of revenue relative to the prior quarter was the primary observable factor supporting the gross margin improvement, as revenue remained unchanged.

Compared to the immediately preceding quarter, gross margin was higher, driven by lower cost of revenue on flat revenue. Versus the same quarter one year earlier, gross margin was lower, as revenue grew but cost of revenue increased at a faster pace.

Monitor the trajectory of cost of revenue, as its sequential decline was the key factor behind the gross margin improvement this quarter.