Labcorp Holdings Inc. stock research
FY2023 Q3
Labcorp Holdings (LH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that was stable versus the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that was stable versus the prior quarter but weakened compared to the same quarter last year.
- The gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue was consistent. The decline from the same quarter last year was driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue and gross profit both increased, while cost of revenue also rose, leaving gross margin stable. Versus the same quarter last year, revenue increased but gross profit decreased, as cost of revenue grew at a faster pace, causing gross margin to weaken.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.8%
Gross profit
$851.2M
Revenue
$3.1B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-3.1 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 | $3.0B | $850.1M | $2.2B | 28.0% |
| Jun 30, 2023 | $3.0B | $842.2M | $2.2B | 27.8% |
| Sep 30, 2023 | $3.1B | $851.2M | $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
Jun 30, 2023
+0.1 pts
Year-over-year change
Sep 30, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue was consistent. The decline from the same quarter last year was driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue and gross profit both increased, while cost of revenue also rose, leaving gross margin stable. Versus the same quarter last year, revenue increased but gross profit decreased, as cost of revenue grew at a faster pace, causing gross margin to weaken.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth compared to last year has compressed gross margin.