IDEX Corporation stock research
FY2024 Q1
IDEX (IEX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased and cost of revenue decreased compared to the preceding quarter, resulting in higher gross profit and gross margin. Relative to the same quarter last year, both revenue and gross profit were lower, while cost of revenue also declined, leading to a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased and cost of revenue decreased compared to the preceding quarter, resulting in higher gross profit and gross margin. Relative to the same quarter last year, both revenue and gross profit were lower, while cost of revenue also declined, leading to a slightly lower gross margin.
- The reduction in cost of revenue relative to the prior quarter was the main factor behind the improved gross margin, with revenue growth also contributing. Year-over-year, cost decreased less than revenue, resulting in a modest margin decline.
- Sequentially, the gross margin improved, with both revenue and gross profit moving higher. On a year-over-year basis, the gross margin weakened, as revenue and gross profit were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.6%
Gross profit
$357.4M
Revenue
$800.5M
Cost of revenue
$443.1M
Quarter-over-quarter change
+2.0 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $800.5M | $357.4M | $443.1M | 44.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.0 pts
Year-over-year change
Mar 31, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue relative to the prior quarter was the main factor behind the improved gross margin, with revenue growth also contributing. Year-over-year, cost decreased less than revenue, resulting in a modest margin decline.
Sequentially, the gross margin improved, with both revenue and gross profit moving higher. On a year-over-year basis, the gross margin weakened, as revenue and gross profit were lower.
Monitor whether revenue growth can be sustained and whether cost control continues to support gross margin.