International Paper Company stock research
FY2023 Q2
International Paper (IP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter a year ago. Gross margin improved from the prior quarter but weakened from the year-ago quarter, as cost of revenue declined at a different rate than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both decreased compared to the prior quarter and the same quarter a year ago. Gross margin improved from the prior quarter but weakened from the year-ago quarter, as cost of revenue declined at a different rate than revenue.
- The key observable driver is the change in cost of revenue relative to revenue; the proportion of cost of revenue was lower than the prior quarter, contributing to the margin improvement.
- Compared to the preceding quarter, revenue and gross profit were lower while gross margin was higher. Compared to the same quarter a year earlier, all three metrics were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$1.3B
Revenue
$4.7B
Cost of revenue
$3.4B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-1.1 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 | $5.0B | $1.4B | $3.6B | 27.5% |
| Jun 30, 2023 | $4.7B | $1.3B | $3.4B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.8 pts
Year-over-year change
Jun 30, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The key observable driver is the change in cost of revenue relative to revenue; the proportion of cost of revenue was lower than the prior quarter, contributing to the margin improvement.
Compared to the preceding quarter, revenue and gross profit were lower while gross margin was higher. Compared to the same quarter a year earlier, all three metrics were lower.
Monitor the relationship between cost of revenue and revenue in future quarters, as shifts in this ratio will directly influence gross margin.