Hubbell Incorporated stock research
FY2023 Q4
Hubbell (HUBB) Gross Margin — Quarter Ended Dec 31, 2023
Revenue declined sequentially while cost of revenue increased slightly, causing gross profit to fall and gross margin to contract. Compared to the same quarter one year earlier, revenue improved, cost of revenue grew less proportionally, gross profit rose, and gross margin expanded.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue declined sequentially while cost of revenue increased slightly, causing gross profit to fall and gross margin to contract. Compared to the same quarter one year earlier, revenue improved, cost of revenue grew less proportionally, gross profit rose, and gross margin expanded.
- The strongest observable margin driver in the current quarter is the relationship between cost of revenue and revenue. Sequentially, cost of revenue remained nearly flat while revenue declined, pressuring gross margin.
- Compared to the preceding quarter, gross margin weakened due to higher cost of revenue combined with lower revenue. Relative to the same quarter one year earlier, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.1%
Gross profit
$445.1M
Revenue
$1.3B
Cost of revenue
$900.7M
Quarter-over-quarter change
-2.4 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2023 | $1.3B | $445.1M | $900.7M | 33.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.4 pts
Year-over-year change
Dec 31, 2022
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver in the current quarter is the relationship between cost of revenue and revenue. Sequentially, cost of revenue remained nearly flat while revenue declined, pressuring gross margin.
Compared to the preceding quarter, gross margin weakened due to higher cost of revenue combined with lower revenue. Relative to the same quarter one year earlier, gross margin improved as revenue grew faster than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as it was the primary factor in the margin change this quarter.