IDEX Corporation stock research
FY2023 Q1
IDEX (IEX) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased slightly, leading to an improved gross margin. Versus the same quarter last year, revenue and gross profit grew, but cost of revenue rose more sharply, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue decreased slightly, leading to an improved gross margin. Versus the same quarter last year, revenue and gross profit grew, but cost of revenue rose more sharply, resulting in a slightly lower gross margin.
- The sequential gross margin improvement was primarily driven by a higher gross profit relative to revenue, as cost of revenue held steady while revenue increased. This reflects a favorable relationship between revenue growth and cost control.
- Gross margin strengthened compared to the immediately preceding quarter, moving from a lower level to a higher level. Relative to the same quarter a year earlier, the gross margin was slightly lower, as the increase in cost of revenue outpaced the revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.2%
Gross profit
$382.5M
Revenue
$845.4M
Cost of revenue
$462.9M
Quarter-over-quarter change
n/a
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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $845.4M | $382.5M | $462.9M | 45.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement was primarily driven by a higher gross profit relative to revenue, as cost of revenue held steady while revenue increased. This reflects a favorable relationship between revenue growth and cost control.
Gross margin strengthened compared to the immediately preceding quarter, moving from a lower level to a higher level. Relative to the same quarter a year earlier, the gross margin was slightly lower, as the increase in cost of revenue outpaced the revenue growth.
Monitor the trajectory of cost of revenue, which rose year-over-year and is a key factor in maintaining gross margin stability.