Henry Schein, Inc. stock research
FY2024 Q3
Henry Schein (HSIC) Gross Margin — Quarter Ended Sep 28, 2024
Revenue increased slightly from the prior quarter but was unchanged from a year ago. Gross profit declined, and cost of revenue rose, resulting in a lower gross margin compared to both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue increased slightly from the prior quarter but was unchanged from a year ago. Gross profit declined, and cost of revenue rose, resulting in a lower gross margin compared to both the preceding quarter and the same quarter last year.
- The strongest observable driver of the margin change is the increase in cost of revenue relative to revenue. Cost of revenue grew while revenue increased only modestly, compressing gross profit and margin.
- Compared to the immediately preceding quarter, gross margin weakened as revenue rose but gross profit fell. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue stable and gross profit marginally lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.3%
Gross profit
$993.0M
Revenue
$3.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-0.2 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 30, 2023 | $3.0B | $924.0M | $2.1B | 30.6% |
| Mar 30, 2024 | $3.2B | $1.0B | $2.2B | 31.9% |
| Jun 29, 2024 | $3.1B | $1.0B | $2.1B | 32.5% |
| Sep 28, 2024 | $3.2B | $993.0M | $2.2B | 31.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
-1.2 pts
Year-over-year change
Sep 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the increase in cost of revenue relative to revenue. Cost of revenue grew while revenue increased only modestly, compressing gross profit and margin.
Compared to the immediately preceding quarter, gross margin weakened as revenue rose but gross profit fell. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue stable and gross profit marginally lower.
Monitor the trend in cost of revenue relative to revenue, as well as the impact of year-end inventory forward buy-in opportunities on working capital and cost of revenue, as noted in the filing.