Honeywell International Inc. stock research
FY2023 Q1
Honeywell International (HON) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable sequentially and increased year-over-year, while cost of revenue decreased from the prior quarter and rose from a year ago, resulting in an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable sequentially and increased year-over-year, while cost of revenue decreased from the prior quarter and rose from a year ago, resulting in an improved gross margin compared to both periods.
- The gross margin improvement was primarily associated with a lower cost of revenue relative to revenue compared to the previous quarter, and a higher revenue relative to cost of revenue compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue decreased while gross profit was unchanged, leading to a higher gross margin. Compared to the same quarter one year earlier, both revenue and gross profit increased, with gross profit growing at a faster pace, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.0%
Gross profit
$3.4B
Revenue
$8.9B
Cost of revenue
$5.5B
Quarter-over-quarter change
n/a
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $8.9B | $3.4B | $5.5B | 38.0% |
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
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was primarily associated with a lower cost of revenue relative to revenue compared to the previous quarter, and a higher revenue relative to cost of revenue compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue decreased while gross profit was unchanged, leading to a higher gross margin. Compared to the same quarter one year earlier, both revenue and gross profit increased, with gross profit growing at a faster pace, resulting in an improved gross margin.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship have been a key factor in gross margin movements.