Comfort Systems USA, Inc. stock research
FY2024 Q1
Comfort Systems USA (FIX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Gross margin weakened compared to the prior quarter but improved compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Gross margin weakened compared to the prior quarter but improved compared to the same quarter a year ago.
- The strongest observable driver is the relationship between cost of revenue and revenue growth. Sequentially, cost grew faster than revenue, pressuring margin; year over year, revenue grew faster than cost, supporting margin expansion.
- Compared to the prior quarter, gross margin was lower despite higher revenue, as cost of revenue rose at a faster pace. Compared to the same quarter last year, gross margin was higher, with both revenue and gross profit increasing at a stronger rate than cost.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.3%
Gross profit
$297.4M
Revenue
$1.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.5B | $297.4M | $1.2B | 19.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.3 pts
Year-over-year change
Mar 31, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue growth. Sequentially, cost grew faster than revenue, pressuring margin; year over year, revenue grew faster than cost, supporting margin expansion.
Compared to the prior quarter, gross margin was lower despite higher revenue, as cost of revenue rose at a faster pace. Compared to the same quarter last year, gross margin was higher, with both revenue and gross profit increasing at a stronger rate than cost.
Monitor whether the pace of cost growth relative to revenue continues to increase, as it directly affects gross margin trends.