Henry Schein, Inc. stock research
FY2023 Q4
Henry Schein (HSIC) Gross Margin — Quarter Ended Dec 30, 2023
Revenue and gross profit declined compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross margin improved relative to the year-ago period but weakened sequentially.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
Revenue and gross profit declined compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross margin improved relative to the year-ago period but weakened sequentially.
- The change in cost of revenue was the most observable driver; it fell more sharply than revenue year over year, supporting margin expansion, but the sequential revenue decline outpaced the cost reduction, compressing margin.
- Compared to the prior quarter, revenue and gross profit were lower and gross margin weakened. Versus the same quarter last year, revenue and gross profit were also lower, but gross margin improved as cost of revenue decreased at a faster rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.6%
Gross profit
$924.0M
Revenue
$3.0B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+1.0 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% |
| Dec 30, 2023 | $3.0B | $924.0M | $2.1B | 30.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.8 pts
Year-over-year change
Dec 31, 2022
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue was the most observable driver; it fell more sharply than revenue year over year, supporting margin expansion, but the sequential revenue decline outpaced the cost reduction, compressing margin.
Compared to the prior quarter, revenue and gross profit were lower and gross margin weakened. Versus the same quarter last year, revenue and gross profit were also lower, but gross margin improved as cost of revenue decreased at a faster rate than revenue.
Monitor revenue trends given back-to-back declines, and assess whether cost reductions can keep pace with potential further revenue decreases.