Genuine Parts Company stock research
FY2023 Q3
Genuine Parts (GPC) Gross Margin — Quarter Ended Sep 30, 2023
Gross margin improved compared to both the prior quarter and the same quarter last year, as gross profit remained relatively stable while cost of revenue decreased sequentially and held steady year-over-year. Revenue was slightly lower quarter-over-quarter but higher year-over-year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Gross margin improved compared to both the prior quarter and the same quarter last year, as gross profit remained relatively stable while cost of revenue decreased sequentially and held steady year-over-year. Revenue was slightly lower quarter-over-quarter but higher year-over-year.
- The most notable margin driver was the year-over-year expansion, as gross profit growth outpaced revenue growth, leading to a higher margin. This improvement reflects a favorable relationship between revenue and cost of revenue.
- Compared to the preceding quarter, revenue was slightly lower but gross profit was similar, resulting in a marginally higher gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, with gross profit growing faster, leading to a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.2%
Gross profit
$2.1B
Revenue
$5.8B
Cost of revenue
$3.7B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+1.3 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% |
| Sep 30, 2023 | $5.8B | $2.1B | $3.7B | 36.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.1 pts
Year-over-year change
Sep 30, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the year-over-year expansion, as gross profit growth outpaced revenue growth, leading to a higher margin. This improvement reflects a favorable relationship between revenue and cost of revenue.
Compared to the preceding quarter, revenue was slightly lower but gross profit was similar, resulting in a marginally higher gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, with gross profit growing faster, leading to a stronger gross margin.
Monitor the trajectory of cost of revenue, as its stability relative to revenue will be key to maintaining gross margin.