Johnson Controls International plc stock research
FY2024 Q1
Johnson Controls International (JCI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue grew compared to the previous quarter, but gross profit increased at a slower pace, leading to a lower gross margin. Compared to the same quarter last year, both revenue and gross profit were lower, while gross margin weakened slightly.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue grew compared to the previous quarter, but gross profit increased at a slower pace, leading to a lower gross margin. Compared to the same quarter last year, both revenue and gross profit were lower, while gross margin weakened slightly.
- The primary observable driver for the sequential margin decline is that cost of revenue increased at a faster rate than revenue. On a year-over-year basis, the margin remained relatively stable as revenue and cost of revenue decreased at similar paces.
- Sequentially, revenue increased while gross margin contracted. Year over year, revenue was lower and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$1.8B
Revenue
$5.2B
Cost of revenue
$3.4B
Quarter-over-quarter change
-8.5 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $6.7B | $2.2B | $4.4B | 33.5% |
| Jun 30, 2023 | $7.1B | $2.4B | $4.7B | 34.1% |
| Sep 30, 2023 | $2.4B | $1.0B | $1.4B | 42.6% |
| Dec 31, 2023 | $5.2B | $1.8B | $3.4B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-8.5 pts
Year-over-year change
Dec 31, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver for the sequential margin decline is that cost of revenue increased at a faster rate than revenue. On a year-over-year basis, the margin remained relatively stable as revenue and cost of revenue decreased at similar paces.
Sequentially, revenue increased while gross margin contracted. Year over year, revenue was lower and gross margin was slightly lower.
Monitor the relationship between cost growth and revenue growth, as the latest quarter showed cost increasing faster than revenue.