International Paper Company stock research
FY2023 Q1
International Paper (IP) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved year-over-year, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved year-over-year, reflecting a mixed performance.
- The strongest observable driver was the change in cost of revenue relative to revenue. Year-over-year, cost of revenue declined more than revenue, leading to margin improvement, while sequentially the proportional cost increased slightly.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower but gross profit was similar, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.5%
Gross profit
$1.4B
Revenue
$5.0B
Cost of revenue
$3.6B
Quarter-over-quarter change
n/a
Year-over-year change
+0.8 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 | $5.0B | $1.4B | $3.6B | 27.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the change in cost of revenue relative to revenue. Year-over-year, cost of revenue declined more than revenue, leading to margin improvement, while sequentially the proportional cost increased slightly.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter last year, revenue was lower but gross profit was similar, and gross margin improved.
Monitor the trend in cost of revenue, as it is the primary component impacting gross margin.