IDEX Corporation stock research
FY2023 Q4
IDEX (IEX) Gross Margin — Quarter Ended Dec 31, 2023
This quarter's gross margin weakened compared to the prior quarter, as revenue decreased slightly while cost of revenue increased, leading to a larger decline in gross profit. Relative to the same quarter last year, gross margin was marginally improved, with revenue lower but cost of revenue also lower, resulting in a smaller gross profit decline.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
This quarter's gross margin weakened compared to the prior quarter, as revenue decreased slightly while cost of revenue increased, leading to a larger decline in gross profit. Relative to the same quarter last year, gross margin was marginally improved, with revenue lower but cost of revenue also lower, resulting in a smaller gross profit decline.
- The strongest observable margin driver this quarter was the increase in cost of revenue relative to revenue compared to the prior quarter. This shift exerted downward pressure on gross margin.
- Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but was marginally higher than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.7%
Gross profit
$336.8M
Revenue
$788.9M
Cost of revenue
$452.1M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+0.1 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% |
| Jun 30, 2023 | $846.2M | $378.0M | $468.2M | 44.7% |
| Sep 30, 2023 | $793.4M | $349.6M | $443.8M | 44.1% |
| Dec 31, 2023 | $788.9M | $336.8M | $452.1M | 42.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.4 pts
Year-over-year change
Dec 31, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver this quarter was the increase in cost of revenue relative to revenue compared to the prior quarter. This shift exerted downward pressure on gross margin.
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but was marginally higher than the year-ago level.
Monitor the trajectory of cost of revenue, which increased sequentially and remains a key factor for gross margin trends.