Genuine Parts Company stock research
FY2024 Q2
Genuine Parts (GPC) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and cost of revenue all increased relative to both the prior quarter and the same quarter last year, with gross margin improving compared to each period. The rise in gross profit outpaced the increase in cost of revenue, leading to a stronger gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased relative to both the prior quarter and the same quarter last year, with gross margin improving compared to each period. The rise in gross profit outpaced the increase in cost of revenue, leading to a stronger gross margin.
- Gross profit grew more than cost of revenue, which was the primary observable driver behind the gross margin improvement. This relationship was consistent in comparisons with both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, gross margin was higher, while revenue, gross profit, and cost of revenue were also higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit higher and cost of revenue stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.6%
Gross profit
$2.2B
Revenue
$6.0B
Cost of revenue
$3.8B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $5.8B | $2.1B | $3.7B | 36.2% |
| Dec 31, 2023 | $5.6B | $2.0B | $3.6B | 36.4% |
| Mar 31, 2024 | $5.8B | $2.1B | $3.7B | 35.9% |
| Jun 30, 2024 | $6.0B | $2.2B | $3.8B | 36.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.7 pts
Year-over-year change
Jun 30, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue, which was the primary observable driver behind the gross margin improvement. This relationship was consistent in comparisons with both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, gross margin was higher, while revenue, gross profit, and cost of revenue were also higher. Compared to the same quarter one year earlier, gross margin was higher, with revenue and gross profit higher and cost of revenue stable.
Monitor changes in merchandise inventories, which increased from the end of the prior fiscal year as shown in the balance sheet.