Corning Incorporated stock research
FY2023 Q4
Corning (GLW) Gross Margin — Quarter Ended Dec 31, 2023
Revenue declined compared to both the prior quarter and the same quarter a year earlier. Cost of revenue also decreased, but the decline was proportionally larger versus the year-ago quarter, leading to an improved gross margin, while the sequential decline was proportionally smaller, causing gross margin to weaken.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue declined compared to both the prior quarter and the same quarter a year earlier. Cost of revenue also decreased, but the decline was proportionally larger versus the year-ago quarter, leading to an improved gross margin, while the sequential decline was proportionally smaller, causing gross margin to weaken.
- The strongest observable margin driver is the relative change in cost of revenue compared to revenue. Year-over-year, cost of revenue fell faster than revenue, expanding gross margin. Sequentially, cost of revenue fell slower than revenue, contracting gross margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter a year ago, revenue and cost of revenue were lower, gross profit was slightly lower, but gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.4%
Gross profit
$911.0M
Revenue
$3.0B
Cost of revenue
$2.1B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+3.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.2B | $1.0B | $2.2B | 31.6% |
| Jun 30, 2023 | $3.2B | $1.0B | $2.2B | 31.2% |
| Sep 30, 2023 | $3.2B | $1.0B | $2.2B | 31.6% |
| Dec 31, 2023 | $3.0B | $911.0M | $2.1B | 30.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.2 pts
Year-over-year change
Dec 31, 2022
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change in cost of revenue compared to revenue. Year-over-year, cost of revenue fell faster than revenue, expanding gross margin. Sequentially, cost of revenue fell slower than revenue, contracting gross margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter a year ago, revenue and cost of revenue were lower, gross profit was slightly lower, but gross margin improved.
Monitor the trajectory of cost of revenue as a percentage of revenue, as its movement relative to revenue has been the primary factor behind gross margin changes.