Hubbell Incorporated stock research
FY2024 Q1
Hubbell (HUBB) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than both prior periods. The cost of revenue grew at a faster rate than revenue, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was lower than both prior periods. The cost of revenue grew at a faster rate than revenue, resulting in a weakened gross margin.
- The relationship between revenue and cost of revenue was the dominant factor, as cost grew more quickly than revenue in both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher while gross profit was lower, again resulting in a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.0%
Gross profit
$433.6M
Revenue
$1.4B
Cost of revenue
$965.5M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-3.9 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $1.4B | $433.6M | $965.5M | 31.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.1 pts
Year-over-year change
Mar 31, 2023
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue was the dominant factor, as cost grew more quickly than revenue in both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher while gross profit was lower, again resulting in a weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth continues to pressure gross margin.