Henry Schein, Inc. stock research
FY2023 Q3
Henry Schein (HSIC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose from the prior quarter but remained similar to the year-ago level. Gross margin was stable sequentially and improved year-over-year, reflecting the relationship between higher revenue and a relatively unchanged cost base.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose from the prior quarter but remained similar to the year-ago level. Gross margin was stable sequentially and improved year-over-year, reflecting the relationship between higher revenue and a relatively unchanged cost base.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose as revenue increased while cost of revenue was essentially unchanged from the same quarter last year.
- Compared to the immediately preceding quarter, gross margin was unchanged at the same level, with revenue and cost of revenue both higher. Compared to the same quarter one year earlier, gross margin was higher, supported by higher revenue and a similar cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.5%
Gross profit
$995.0M
Revenue
$3.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+1.7 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% |
| Sep 30, 2023 | $3.2B | $995.0M | $2.2B | 31.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+0.0 pts
Year-over-year change
Sep 24, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which rose as revenue increased while cost of revenue was essentially unchanged from the same quarter last year.
Compared to the immediately preceding quarter, gross margin was unchanged at the same level, with revenue and cost of revenue both higher. Compared to the same quarter one year earlier, gross margin was higher, supported by higher revenue and a similar cost of revenue.
Monitor inventory forward buy-in opportunities, as the company notes they are most prevalent before year-end and may affect working capital and future cost of revenue.