Hubbell Incorporated stock research
FY2023 Q3
Hubbell (HUBB) Gross Margin — Quarter Ended Sep 30, 2023
Revenue in the current quarter was in line with the preceding quarter and higher than a year ago. Gross profit was slightly lower sequentially but markedly improved year-over-year, while cost of revenue was modestly higher than the previous quarter and notably lower than the same quarter last year; combined, gross margin weakened slightly from the prior quarter but improved strongly from the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue in the current quarter was in line with the preceding quarter and higher than a year ago. Gross profit was slightly lower sequentially but markedly improved year-over-year, while cost of revenue was modestly higher than the previous quarter and notably lower than the same quarter last year; combined, gross margin weakened slightly from the prior quarter but improved strongly from the year-ago period.
- The strongest observable margin driver was the change in cost of revenue, which was substantially lower than a year earlier, directly supporting gross margin expansion. This item is the key factor to monitor.
- Gross margin weakened slightly compared with the immediate prior quarter due to a small rise in cost of revenue relative to stable revenue. Compared with the same quarter one year ago, gross margin was meaningfully higher, driven by both higher revenue and a considerable reduction in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.4%
Gross profit
$487.4M
Revenue
$1.4B
Cost of revenue
$888.4M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+5.2 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.3B | $448.3M | $837.1M | 34.9% |
| Jun 30, 2023 | $1.4B | $496.2M | $869.7M | 36.3% |
| Sep 30, 2023 | $1.4B | $487.4M | $888.4M | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.9 pts
Year-over-year change
Sep 30, 2022
+5.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the change in cost of revenue, which was substantially lower than a year earlier, directly supporting gross margin expansion. This item is the key factor to monitor.
Gross margin weakened slightly compared with the immediate prior quarter due to a small rise in cost of revenue relative to stable revenue. Compared with the same quarter one year ago, gross margin was meaningfully higher, driven by both higher revenue and a considerable reduction in cost of revenue.
Monitor cost of revenue trends, as the current quarter showed a sequential increase despite a strong year-over-year decline.