Honeywell International Inc. stock research
FY2023 Q3
Honeywell International (HON) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and cost of revenue both increased from the prior quarter, leaving gross profit unchanged and causing gross margin to weaken slightly. Compared to the same quarter last year, revenue and gross profit grew, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and cost of revenue both increased from the prior quarter, leaving gross profit unchanged and causing gross margin to weaken slightly. Compared to the same quarter last year, revenue and gross profit grew, and gross margin improved.
- The most notable change is the improvement in gross margin from the same quarter last year, with revenue increasing more than cost of revenue.
- Compared to the prior quarter, gross margin weakened slightly as cost of revenue increased proportionally with revenue. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.4%
Gross profit
$3.5B
Revenue
$9.2B
Cost of revenue
$5.7B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+0.9 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% |
| Jun 30, 2023 | $9.1B | $3.5B | $5.6B | 38.5% |
| Sep 30, 2023 | $9.2B | $3.5B | $5.7B | 38.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.0 pts
Year-over-year change
Sep 30, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change is the improvement in gross margin from the same quarter last year, with revenue increasing more than cost of revenue.
Compared to the prior quarter, gross margin weakened slightly as cost of revenue increased proportionally with revenue. Compared to the same quarter last year, gross margin improved as revenue grew faster than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the slight increase in the cost ratio from the prior quarter contributed to the margin decline.