IE

IDEX Corporation stock research

Sep 30, 2023

FY2023 Q3

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

In the current quarter, revenue and gross profit declined, while cost of revenue decreased at a slower pace, leading to a weakened gross margin. The company’s filing notes that its operations are influenced by industrial activity and economic conditions.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the current quarter, revenue and gross profit declined, while cost of revenue decreased at a slower pace, leading to a weakened gross margin. The company’s filing notes that its operations are influenced by industrial activity and economic conditions.

  • The gross margin was lower than both the prior quarter and the same quarter last year, as the decline in revenue was not accompanied by a proportional reduction in cost of revenue.
  • Compared to the immediately preceding quarter, gross margin weakened, and it was also lower than the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

44.1%

Gross profit

$349.6M

Revenue

$793.4M

Cost of revenue

$443.8M

Quarter-over-quarter change

-0.6 pts

Year-over-year change

-2.3 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%
Sep 30, 2023$793.4M$349.6M$443.8M44.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.6 pts

Year-over-year change

Sep 30, 2022

-2.3 pts

What the margin says

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

The gross margin was lower than both the prior quarter and the same quarter last year, as the decline in revenue was not accompanied by a proportional reduction in cost of revenue.

Compared to the immediately preceding quarter, gross margin weakened, and it was also lower than the same quarter one year earlier.

Monitor the trend in cost of revenue relative to revenue in upcoming quarters.

IEX Gross Margin — Quarter Ended Sep 30, 2023