Comfort Systems USA, Inc. stock research
FY2023 Q3
Comfort Systems USA (FIX) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and cost of revenue both increased, while gross profit rose and gross margin improved compared to the prior quarter and the same quarter last year. The relationship shows that gross profit grew faster than cost of revenue, supporting the margin expansion.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and cost of revenue both increased, while gross profit rose and gross margin improved compared to the prior quarter and the same quarter last year. The relationship shows that gross profit grew faster than cost of revenue, supporting the margin expansion.
- The improvement in gross margin relative to both the preceding quarter and the year-ago quarter reflects gross profit growing at a faster pace than cost of revenue.
- Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.1%
Gross profit
$277.5M
Revenue
$1.4B
Cost of revenue
$1.1B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+2.1 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 | $205.4M | $969.2M | 17.5% |
| Jun 30, 2023 | $1.3B | $227.9M | $1.1B | 17.6% |
| Sep 30, 2023 | $1.4B | $277.5M | $1.1B | 20.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.6 pts
Year-over-year change
Sep 30, 2022
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin relative to both the preceding quarter and the year-ago quarter reflects gross profit growing at a faster pace than cost of revenue.
Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, all three metrics were higher, and gross margin also improved.
Monitor the trajectory of cost of revenue relative to revenue, as any shift in this relationship could affect gross margin stability.