Henry Schein, Inc. stock research
FY2023 Q2
Henry Schein (HSIC) Gross Margin — Quarter Ended Jul 1, 2023
Revenue was stable compared to the prior quarter, while gross profit increased slightly and cost of revenue remained similar, resulting in a gross margin that was essentially unchanged. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was similar, and gross margin improved modestly.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue was stable compared to the prior quarter, while gross profit increased slightly and cost of revenue remained similar, resulting in a gross margin that was essentially unchanged. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was similar, and gross margin improved modestly.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross profit grew while revenue was unchanged from the prior quarter, leading to a stable gross margin. This suggests that cost of revenue was managed effectively in the current period.
- Compared to the immediately preceding quarter, gross margin was slightly lower but remained broadly stable. Compared to the same quarter one year earlier, gross margin was higher, reflecting improved profitability relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.5%
Gross profit
$975.0M
Revenue
$3.1B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $3.1B | $966.0M | $2.1B | 31.6% |
| Jul 1, 2023 | $3.1B | $975.0M | $2.1B | 31.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
-0.1 pts
Year-over-year change
Jun 25, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, as gross profit grew while revenue was unchanged from the prior quarter, leading to a stable gross margin. This suggests that cost of revenue was managed effectively in the current period.
Compared to the immediately preceding quarter, gross margin was slightly lower but remained broadly stable. Compared to the same quarter one year earlier, gross margin was higher, reflecting improved profitability relative to revenue.
Monitor the trend in cost of revenue relative to revenue, as any shift could affect gross margin stability.