IE

IDEX Corporation stock research

Sep 30, 2024

FY2024 Q3

IDEX (IEX) Gross Margin — Quarter Ended Sep 30, 2024

Revenue decreased while cost of revenue increased, resulting in lower gross profit and a weakened gross margin compared to the prior quarter. Versus the same period last year, revenue and gross profit were higher, and gross margin improved slightly.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue decreased while cost of revenue increased, resulting in lower gross profit and a weakened gross margin compared to the prior quarter. Versus the same period last year, revenue and gross profit were higher, and gross margin improved slightly.

  • The increase in cost of revenue relative to revenue was the primary observable factor driving the sequential gross margin decline.
  • Sequentially, gross margin weakened as cost of revenue grew while revenue contracted. Year over year, gross margin strengthened modestly, supported by a slightly larger revenue increase relative to cost of revenue.

Gross margin snapshot

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

Gross margin

44.3%

Gross profit

$353.9M

Revenue

$798.2M

Cost of revenue

$444.3M

Quarter-over-quarter change

-1.1 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$788.9M$336.8M$452.1M42.7%
Mar 31, 2024$800.5M$357.4M$443.1M44.6%
Jun 30, 2024$807.2M$366.8M$440.4M45.4%
Sep 30, 2024$798.2M$353.9M$444.3M44.3%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-1.1 pts

Year-over-year change

Sep 30, 2023

+0.3 pts

What the margin says

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

The increase in cost of revenue relative to revenue was the primary observable factor driving the sequential gross margin decline.

Sequentially, gross margin weakened as cost of revenue grew while revenue contracted. Year over year, gross margin strengthened modestly, supported by a slightly larger revenue increase relative to cost of revenue.

Monitor inventory recalibration and order stabilization trends as highlighted in the filing, which may influence future cost of revenue and margin performance.