Comfort Systems USA, Inc. stock research
FY2023 Q4
Comfort Systems USA (FIX) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter but higher than the same quarter a year earlier. Gross profit and gross margin improved both sequentially and year over year, indicating strengthened profitability.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter but higher than the same quarter a year earlier. Gross profit and gross margin improved both sequentially and year over year, indicating strengthened profitability.
- The primary observable driver of margin improvement is the faster growth of gross profit relative to cost of revenue on both a sequential and year-over-year basis.
- Sequentially, revenue was unchanged while gross profit and gross margin edged higher. Year over year, revenue, gross profit, and gross margin all increased; cost of revenue also rose but at a slower pace than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.6%
Gross profit
$279.7M
Revenue
$1.4B
Cost of revenue
$1.1B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.7 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 | $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% |
| Dec 31, 2023 | $1.4B | $279.7M | $1.1B | 20.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.5 pts
Year-over-year change
Dec 31, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin improvement is the faster growth of gross profit relative to cost of revenue on both a sequential and year-over-year basis.
Sequentially, revenue was unchanged while gross profit and gross margin edged higher. Year over year, revenue, gross profit, and gross margin all increased; cost of revenue also rose but at a slower pace than gross profit.
Monitor the trend in cost of revenue relative to revenue, as any acceleration could pressure gross margins.