Genuine Parts Company stock research
FY2023 Q1
Genuine Parts (GPC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit was stable relative to the prior quarter but higher year over year. Cost of revenue rose in both comparisons, leading to a gross margin that weakened slightly from the prior quarter but improved modestly from the prior-year period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit was stable relative to the prior quarter but higher year over year. Cost of revenue rose in both comparisons, leading to a gross margin that weakened slightly from the prior quarter but improved modestly from the prior-year period.
- The most observable margin driver was the year-over-year improvement in gross margin, supported by revenue growth that outpaced cost growth. Sequentially, the margin narrowed as cost growth closely matched revenue growth.
- Compared with the immediately preceding quarter, gross margin was slightly lower amid similar gross profit and higher revenue and cost. Compared with the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.9%
Gross profit
$2.0B
Revenue
$5.8B
Cost of revenue
$3.8B
Quarter-over-quarter change
n/a
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 |
|---|---|---|---|---|
| Mar 31, 2023 | $5.8B | $2.0B | $3.8B | 34.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the year-over-year improvement in gross margin, supported by revenue growth that outpaced cost growth. Sequentially, the margin narrowed as cost growth closely matched revenue growth.
Compared with the immediately preceding quarter, gross margin was slightly lower amid similar gross profit and higher revenue and cost. Compared with the same quarter one year earlier, gross margin was higher, with revenue and gross profit both higher and cost of revenue increased.
Monitor whether the pace of cost growth continues to track closely with revenue growth, as this would pressure further margin expansion.