HU

Hubbell Incorporated stock research

Sep 30, 2024

FY2024 Q3

Hubbell (HUBB) Gross Margin — Quarter Ended Sep 30, 2024

In the most recent quarter, revenue decreased compared to the preceding quarter but was similar to the same quarter one year earlier. Gross profit also declined from the preceding quarter but was higher than the year-ago quarter, while cost of revenue was slightly lower than the preceding quarter and higher than the year-ago quarter; gross margin weakened slightly versus both periods.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

In the most recent quarter, revenue decreased compared to the preceding quarter but was similar to the same quarter one year earlier. Gross profit also declined from the preceding quarter but was higher than the year-ago quarter, while cost of revenue was slightly lower than the preceding quarter and higher than the year-ago quarter; gross margin weakened slightly versus both periods.

  • The ratio of cost of revenue to revenue increased slightly compared to both the preceding quarter and the same quarter one year earlier, which compressed the gross margin. This indicates that cost growth outpaced revenue growth when measured as a share of revenue.
  • Revenue was lower than the preceding quarter and similar to the year-ago quarter. Gross profit was lower than the preceding quarter but higher than the year-ago quarter, and cost of revenue was slightly lower than the preceding quarter yet higher than the year-ago quarter. Gross margin weakened slightly compared to both periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

35.1%

Gross profit

$506.0M

Revenue

$1.4B

Cost of revenue

$936.6M

Quarter-over-quarter change

-0.3 pts

Year-over-year change

-0.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.3B$445.1M$900.7M33.1%
Mar 31, 2024$1.4B$433.6M$965.5M31.0%
Jun 30, 2024$1.5B$513.8M$938.7M35.4%
Sep 30, 2024$1.4B$506.0M$936.6M35.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-0.3 pts

Year-over-year change

Sep 30, 2023

-0.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The ratio of cost of revenue to revenue increased slightly compared to both the preceding quarter and the same quarter one year earlier, which compressed the gross margin. This indicates that cost growth outpaced revenue growth when measured as a share of revenue.

Revenue was lower than the preceding quarter and similar to the year-ago quarter. Gross profit was lower than the preceding quarter but higher than the year-ago quarter, and cost of revenue was slightly lower than the preceding quarter yet higher than the year-ago quarter. Gross margin weakened slightly compared to both periods.

Monitor whether the cost of revenue as a share of revenue continues to increase, as it has shown a slight upward trend relative to both prior periods.