FI

Comfort Systems USA, Inc. stock research

Sep 30, 2024

FY2024 Q3

Comfort Systems USA (FIX) Gross Margin — Quarter Ended Sep 30, 2024

Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue was relatively unchanged, resulting in an improved gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also showing improvement.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue was relatively unchanged, resulting in an improved gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross margin also showing improvement.

  • Gross profit grew more than proportionally relative to revenue, driving the gross margin higher sequentially and year-over-year. The relationship between revenue and cost of revenue shifted favorably, with gross profit expanding while revenue growth was modest.
  • Compared to the immediately preceding quarter, gross margin improved from a lower level, supported by higher gross profit on similar revenue. Versus the same quarter one year earlier, gross margin strengthened from a lower level, as revenue and gross profit both increased.

Gross margin snapshot

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

Gross margin

21.1%

Gross profit

$381.7M

Revenue

$1.8B

Cost of revenue

$1.4B

Quarter-over-quarter change

+1.0 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.4B$279.7M$1.1B20.6%
Mar 31, 2024$1.5B$297.4M$1.2B19.3%
Jun 30, 2024$1.8B$363.6M$1.4B20.1%
Sep 30, 2024$1.8B$381.7M$1.4B21.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+1.0 pts

Year-over-year change

Sep 30, 2023

+0.9 pts

What the margin says

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

Gross profit grew more than proportionally relative to revenue, driving the gross margin higher sequentially and year-over-year. The relationship between revenue and cost of revenue shifted favorably, with gross profit expanding while revenue growth was modest.

Compared to the immediately preceding quarter, gross margin improved from a lower level, supported by higher gross profit on similar revenue. Versus the same quarter one year earlier, gross margin strengthened from a lower level, as revenue and gross profit both increased.

Monitor the trend in cost of revenue relative to revenue, as its stability in the current quarter contributed to margin improvement.