Genuine Parts Company stock research
FY2023 Q2
Genuine Parts (GPC) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased, gross profit increased, and cost of revenue changed less proportionally, resulting in a higher gross margin. Compared to the prior quarter and the same quarter a year ago, gross margin improved as revenue grew faster than the cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased, gross profit increased, and cost of revenue changed less proportionally, resulting in a higher gross margin. Compared to the prior quarter and the same quarter a year ago, gross margin improved as revenue grew faster than the cost of revenue.
- The strongest observable margin driver was the faster growth in revenue relative to the cost of revenue, which expanded both gross profit and gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, but gross margin improved. Versus the same quarter one year earlier, revenue and gross profit rose, cost of revenue also rose, yet gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.1%
Gross profit
$2.1B
Revenue
$5.9B
Cost of revenue
$3.8B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.1 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% |
| Jun 30, 2023 | $5.9B | $2.1B | $3.8B | 36.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.2 pts
Year-over-year change
Jun 30, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the faster growth in revenue relative to the cost of revenue, which expanded both gross profit and gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue all increased, but gross margin improved. Versus the same quarter one year earlier, revenue and gross profit rose, cost of revenue also rose, yet gross margin was higher.
Monitor the trend of merchandise inventories, which increased from the prior year-end, as changes in inventory levels may influence future cost of revenue and gross margin.