Flex Ltd. stock research
FY2024 Q2
Flex (FLEX) Gross Margin — Quarter Ended Sep 29, 2023
Revenue was stable sequentially while gross profit improved, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened slightly.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2024 Q2
Revenue was stable sequentially while gross profit improved, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened slightly.
- Gross profit increased sequentially on flat revenue, indicating that cost of revenue was managed more efficiently relative to revenue. This improvement in cost control was the primary factor behind the gross margin expansion from the prior quarter.
- Compared with the immediately preceding quarter, gross margin improved. Versus the same quarter one year earlier, both revenue and gross profit were lower, and gross margin weakened modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.5%
Gross profit
$519.0M
Revenue
$6.9B
Cost of revenue
$6.4B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-0.4 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 | $6.9B | $476.0M | $6.4B | 6.9% |
| Sep 29, 2023 | $6.9B | $519.0M | $6.4B | 7.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.6 pts
Year-over-year change
Sep 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased sequentially on flat revenue, indicating that cost of revenue was managed more efficiently relative to revenue. This improvement in cost control was the primary factor behind the gross margin expansion from the prior quarter.
Compared with the immediately preceding quarter, gross margin improved. Versus the same quarter one year earlier, both revenue and gross profit were lower, and gross margin weakened modestly.
Monitor whether the improvement in cost efficiency can be sustained or if cost of revenue pressure resumes in future quarters.