Honeywell International Inc. stock research
FY2024 Q3
Honeywell International (HON) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased while gross profit held steady, causing gross margin to improve as cost of revenue declined. Compared with the same quarter a year earlier, revenue was higher but gross profit and gross margin were lower.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue decreased while gross profit held steady, causing gross margin to improve as cost of revenue declined. Compared with the same quarter a year earlier, revenue was higher but gross profit and gross margin were lower.
- The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue relative to revenue. The decline from the year-ago quarter was mainly due to cost of revenue growing faster than revenue.
- Gross margin rose sequentially as revenue edged lower and cost of revenue fell. Year over year, gross margin weakened as revenue increased but cost of revenue rose more than proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.1%
Gross profit
$3.4B
Revenue
$9.7B
Cost of revenue
$6.0B
Quarter-over-quarter change
+3.3 pts
Year-over-year change
-3.3 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 | $5.8B | $1.9B | $3.8B | 33.6% |
| Mar 31, 2024 | $8.2B | $3.2B | $5.6B | 39.5% |
| Jun 30, 2024 | $10.5B | $3.4B | $5.9B | 31.8% |
| Sep 30, 2024 | $9.7B | $3.4B | $6.0B | 35.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+3.3 pts
Year-over-year change
Sep 30, 2023
-3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a reduction in cost of revenue relative to revenue. The decline from the year-ago quarter was mainly due to cost of revenue growing faster than revenue.
Gross margin rose sequentially as revenue edged lower and cost of revenue fell. Year over year, gross margin weakened as revenue increased but cost of revenue rose more than proportionally.
Monitor the trajectory of cost of revenue relative to revenue in the coming quarters.