Honeywell International Inc. stock research
FY2023 Q4
Honeywell International (HON) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened versus both periods, reflecting a larger proportional decline in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened versus both periods, reflecting a larger proportional decline in gross profit relative to revenue.
- The decline in gross profit outpaced the decline in revenue, which was the primary factor behind the gross margin weakening. Cost of revenue decreased at a slower rate than revenue, compressing the margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were also lower, with gross margin again weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.6%
Gross profit
$1.9B
Revenue
$5.8B
Cost of revenue
$3.8B
Quarter-over-quarter change
-4.9 pts
Year-over-year change
-3.6 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2023 | $5.8B | $1.9B | $3.8B | 33.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-4.9 pts
Year-over-year change
Dec 31, 2022
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit outpaced the decline in revenue, which was the primary factor behind the gross margin weakening. Cost of revenue decreased at a slower rate than revenue, compressing the margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were also lower, with gross margin again weaker.
Monitor the relationship between revenue and cost of revenue trends to assess whether gross margin can stabilize.