Labcorp Holdings Inc. stock research
FY2023 Q1
Labcorp Holdings (LH) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the prior quarter, while gross profit and gross margin both weakened slightly. Versus the same quarter a year ago, revenue was higher but gross profit and gross margin were lower, as cost of revenue increased more than proportionally.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter, while gross profit and gross margin both weakened slightly. Versus the same quarter a year ago, revenue was higher but gross profit and gross margin were lower, as cost of revenue increased more than proportionally.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue was unchanged from the prior quarter, but cost of revenue rose, compressing gross profit and margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit declined while revenue was flat. Compared to the same quarter one year earlier, gross margin was lower, with revenue higher but gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.8%
Gross profit
$842.2M
Revenue
$3.0B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-4.5 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% |
| Jun 30, 2023 | $3.0B | $842.2M | $2.2B | 27.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.2 pts
Year-over-year change
Jun 30, 2022
-4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue was unchanged from the prior quarter, but cost of revenue rose, compressing gross profit and margin.
Compared to the immediately preceding quarter, gross margin weakened slightly as gross profit declined while revenue was flat. Compared to the same quarter one year earlier, gross margin was lower, with revenue higher but gross profit lower.
Monitor the trajectory of cost of revenue relative to revenue, as its increase without a corresponding revenue rise pressured margins.