Honeywell International Inc. stock research
FY2024 Q1
Honeywell International (HON) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Gross profit also decreased, but cost of revenue was mixed relative to the two prior periods, resulting in a gross margin that improved versus the prior quarter but weakened compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier. Gross profit also decreased, but cost of revenue was mixed relative to the two prior periods, resulting in a gross margin that improved versus the prior quarter but weakened compared to the year-ago quarter.
- Gross margin improved from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to revenue. However, margin was lower than the year-ago period, reflecting a different balance between revenue and cost of revenue components.
- Compared with the previous quarter, revenue increased while cost of revenue also increased, but gross profit grew sufficiently to lift gross margin higher. Versus the same quarter last year, revenue decreased, cost of revenue was relatively stable, and gross profit fell, causing gross margin to decline.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.5%
Gross profit
$3.2B
Revenue
$8.2B
Cost of revenue
$5.6B
Quarter-over-quarter change
+5.9 pts
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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $8.2B | $3.2B | $5.6B | 39.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+5.9 pts
Year-over-year change
Mar 31, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to revenue. However, margin was lower than the year-ago period, reflecting a different balance between revenue and cost of revenue components.
Compared with the previous quarter, revenue increased while cost of revenue also increased, but gross profit grew sufficiently to lift gross margin higher. Versus the same quarter last year, revenue decreased, cost of revenue was relatively stable, and gross profit fell, causing gross margin to decline.
Monitor the trend in cost of revenue relative to revenue, as its movement had a notable effect on gross margin direction in both comparisons.