Genuine Parts Company stock research
FY2024 Q3
Genuine Parts (GPC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was essentially flat compared to the prior quarter, while gross profit and cost of revenue remained at similar levels. Gross margin improved slightly, reflecting a favorable shift in the relationship between cost of revenue and revenue, and was higher than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was essentially flat compared to the prior quarter, while gross profit and cost of revenue remained at similar levels. Gross margin improved slightly, reflecting a favorable shift in the relationship between cost of revenue and revenue, and was higher than the same quarter last year.
- The most identifiable driver was the modest sequential increase in gross margin, which occurred without a change in revenue or gross profit magnitude, indicating that the cost of revenue as a proportion of revenue decreased slightly.
- Compared to the immediately preceding quarter, revenue was stable and gross margin edged higher. Relative to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin also strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.8%
Gross profit
$2.2B
Revenue
$6.0B
Cost of revenue
$3.8B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $6.0B | $2.2B | $3.8B | 36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.3 pts
Year-over-year change
Sep 30, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most identifiable driver was the modest sequential increase in gross margin, which occurred without a change in revenue or gross profit magnitude, indicating that the cost of revenue as a proportion of revenue decreased slightly.
Compared to the immediately preceding quarter, revenue was stable and gross margin edged higher. Relative to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin also strengthened.
Monitor whether the cost of revenue continues to grow at a pace similar to or different from revenue in upcoming quarters, as this relationship directly affects gross margin trends.