IE

IDEX Corporation stock research

Jun 30, 2023

FY2023 Q2

IDEX (IEX) Gross Margin — Quarter Ended Jun 30, 2023

Revenue was slightly higher than both the immediately preceding quarter and the same quarter one year earlier, while gross profit was lower than the prior quarter but higher than the year-ago period. Cost of revenue increased at a faster pace than revenue compared to the prior quarter, leading to a slightly weaker gross margin; compared to the year-ago quarter, the gross margin was also marginally lower.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue was slightly higher than both the immediately preceding quarter and the same quarter one year earlier, while gross profit was lower than the prior quarter but higher than the year-ago period. Cost of revenue increased at a faster pace than revenue compared to the prior quarter, leading to a slightly weaker gross margin; compared to the year-ago quarter, the gross margin was also marginally lower.

  • The change in cost of revenue relative to revenue was the most observable factor affecting gross margin. Compared to the prior quarter, cost of revenue grew more than revenue, compressing the margin.
  • Revenue was slightly higher than both the prior quarter and the year-ago quarter. Gross profit was lower than the prior quarter but higher than the year-ago quarter, while gross margin was slightly lower than both periods.

Gross margin snapshot

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

Gross margin

44.7%

Gross profit

$378.0M

Revenue

$846.2M

Cost of revenue

$468.2M

Quarter-over-quarter change

-0.6 pts

Year-over-year change

-0.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$845.4M$382.5M$462.9M45.2%
Jun 30, 2023$846.2M$378.0M$468.2M44.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-0.6 pts

Year-over-year change

Jun 30, 2022

-0.2 pts

What the margin says

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

The change in cost of revenue relative to revenue was the most observable factor affecting gross margin. Compared to the prior quarter, cost of revenue grew more than revenue, compressing the margin.

Revenue was slightly higher than both the prior quarter and the year-ago quarter. Gross profit was lower than the prior quarter but higher than the year-ago quarter, while gross margin was slightly lower than both periods.

Monitor the trend in cost of revenue relative to revenue in future quarters to assess whether margin pressure persists.

IEX Gross Margin — Quarter Ended Jun 30, 2023