Fortive Corporation stock research
FY2024 Q1
Fortive (FTV) Gross Margin — Quarter Ended Mar 29, 2024
Revenue decreased from the same quarter last year but increased from the prior quarter, which had negative revenue. Gross profit followed a similar pattern, while gross margin improved compared to both periods.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q1
Revenue decreased from the same quarter last year but increased from the prior quarter, which had negative revenue. Gross profit followed a similar pattern, while gross margin improved compared to both periods.
- The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue increased while revenue decreased, yet gross margin improved, indicating a smaller proportion of revenue consumed by cost.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue all turned from negative to positive, and gross margin improved significantly. Compared to the same quarter last year, revenue and gross profit were lower, while cost of revenue was slightly higher, but gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.9%
Gross profit
$628.5M
Revenue
$984.2M
Cost of revenue
$620.3M
Quarter-over-quarter change
+34.0 pts
Year-over-year change
+5.8 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 | $1.5B | $905.4M | $621.0M | 59.3% |
| Sep 29, 2023 | $1.5B | $893.0M | $601.5M | 59.8% |
| Dec 31, 2023 | -$567.7M | -$169.5M | -$398.2M | 29.9% |
| Mar 29, 2024 | $984.2M | $628.5M | $620.3M | 63.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+34.0 pts
Year-over-year change
Mar 31, 2023
+5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue increased while revenue decreased, yet gross margin improved, indicating a smaller proportion of revenue consumed by cost.
Compared to the prior quarter, revenue, gross profit, and cost of revenue all turned from negative to positive, and gross margin improved significantly. Compared to the same quarter last year, revenue and gross profit were lower, while cost of revenue was slightly higher, but gross margin improved.
Monitor inventory levels, as they increased from the prior quarter end.