Labcorp Holdings Inc. stock research
FY2023 Q1
Labcorp Holdings (LH) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly but remained lower than the same quarter one year earlier, when revenue and gross profit were higher.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly but remained lower than the same quarter one year earlier, when revenue and gross profit were higher.
- Gross profit grew more than cost of revenue relative to the prior quarter, leading to a modest gross margin improvement. The year-ago comparison shows a weaker margin despite higher absolute gross profit.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.0%
Gross profit
$850.1M
Revenue
$3.0B
Cost of revenue
$2.2B
Quarter-over-quarter change
n/a
Year-over-year change
-3.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.0B | $850.1M | $2.2B | 28.0% |
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
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue relative to the prior quarter, leading to a modest gross margin improvement. The year-ago comparison shows a weaker margin despite higher absolute gross profit.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as it increased in both comparisons.