Hubbell Incorporated stock research
FY2024 Q2
Hubbell (HUBB) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased from the prior quarter, while cost of revenue declined, leading to a higher gross margin. Compared to the same quarter a year ago, revenue rose but gross profit was slightly lower and cost of revenue increased, resulting in a weaker gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased from the prior quarter, while cost of revenue declined, leading to a higher gross margin. Compared to the same quarter a year ago, revenue rose but gross profit was slightly lower and cost of revenue increased, resulting in a weaker gross margin.
- The largest observable change in margin was the decline in cost of revenue relative to revenue between the current quarter and the prior quarter, which improved gross margin. In the year-ago comparison, a higher proportion of revenue was absorbed by cost of revenue, weakening margin.
- Compared to the immediately preceding quarter, gross margin improved, with revenue higher and cost of revenue lower. Compared to the same quarter one year earlier, gross margin weakened, as revenue increased while cost of revenue rose by a greater extent.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.4%
Gross profit
$513.8M
Revenue
$1.5B
Cost of revenue
$938.7M
Quarter-over-quarter change
+4.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.5B | $513.8M | $938.7M | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+4.4 pts
Year-over-year change
Jun 30, 2023
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The largest observable change in margin was the decline in cost of revenue relative to revenue between the current quarter and the prior quarter, which improved gross margin. In the year-ago comparison, a higher proportion of revenue was absorbed by cost of revenue, weakening margin.
Compared to the immediately preceding quarter, gross margin improved, with revenue higher and cost of revenue lower. Compared to the same quarter one year earlier, gross margin weakened, as revenue increased while cost of revenue rose by a greater extent.
Monitor the trajectory of cost of revenue in relation to revenue, given its central role in the margin comparisons this quarter.