FT

Fortive Corporation stock research

Sep 27, 2024

FY2024 Q3

Fortive (FTV) Gross Margin — Quarter Ended Sep 27, 2024

The current quarter reports negative revenue and positive cost of revenue, resulting in a positive gross profit but a negative gross margin. This marks a sharp reversal from the prior quarter and the year-ago quarter, both of which had positive revenue and high gross margins.

Gross margin takeaway

Quarter ended Sep 27, 2024 · FY2024 Q3

The current quarter reports negative revenue and positive cost of revenue, resulting in a positive gross profit but a negative gross margin. This marks a sharp reversal from the prior quarter and the year-ago quarter, both of which had positive revenue and high gross margins.

  • The most prominent driver of the current quarter's gross margin is the negative revenue figure, which is a fundamental shift from the positive revenue seen in comparison periods.
  • Compared to the immediately preceding quarter and the same quarter one year earlier, revenue has turned from positive to negative, cost of revenue has decreased, gross profit has fallen, and gross margin has weakened dramatically from positive to deeply negative.

Gross margin snapshot

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

Gross margin

-132.4%

Gross profit

$91.1M

Revenue

-$68.8M

Cost of revenue

$362.2M

Quarter-over-quarter change

-189.9 pts

Year-over-year change

-192.2 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-$567.7M-$169.5M-$398.2M29.9%
Mar 29, 2024$984.2M$628.5M$620.3M63.9%
Jun 28, 2024$2.1B$1.2B$624.1M57.5%
Sep 27, 2024-$68.8M$91.1M$362.2M-132.4%

Quarterly comparisons

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

Previous-quarter change

Jun 28, 2024

-189.9 pts

Year-over-year change

Sep 29, 2023

-192.2 pts

What the margin says

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

The most prominent driver of the current quarter's gross margin is the negative revenue figure, which is a fundamental shift from the positive revenue seen in comparison periods.

Compared to the immediately preceding quarter and the same quarter one year earlier, revenue has turned from positive to negative, cost of revenue has decreased, gross profit has fallen, and gross margin has weakened dramatically from positive to deeply negative.

Monitor the accounting adjustments or transactions that caused the reported negative revenue, as this is critical to understanding the company's financial performance.