Corning Incorporated stock research
FY2024 Q1
Corning (GLW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared with the prior quarter, while gross profit increased and cost of revenue decreased, leading to an improved gross margin. Compared with the same quarter one year earlier, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared with the prior quarter, while gross profit increased and cost of revenue decreased, leading to an improved gross margin. Compared with the same quarter one year earlier, revenue was lower and gross profit was slightly lower, but cost of revenue decreased more, resulting in a higher gross margin.
- The improvement in gross margin was driven by a lower ratio of cost of revenue to revenue, as cost of revenue declined while revenue remained relatively stable compared with the prior quarter and declined less than cost of revenue year over year.
- Sequentially, gross margin improved as cost of revenue decreased and revenue held steady. Year over year, gross margin also improved, even though revenue was lower, because cost of revenue declined more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$993.0M
Revenue
$3.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
+3.0 pts
Year-over-year change
+1.8 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 | $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% |
| Mar 31, 2024 | $3.0B | $993.0M | $2.0B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.0 pts
Year-over-year change
Mar 31, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by a lower ratio of cost of revenue to revenue, as cost of revenue declined while revenue remained relatively stable compared with the prior quarter and declined less than cost of revenue year over year.
Sequentially, gross margin improved as cost of revenue decreased and revenue held steady. Year over year, gross margin also improved, even though revenue was lower, because cost of revenue declined more sharply.
Monitor the trajectory of cost of revenue, as its relationship with revenue is the primary observable factor behind gross margin movements.