Labcorp Holdings Inc. stock research
FY2024 Q2
Labcorp Holdings (LH) Gross Margin — Quarter Ended Jun 30, 2024
Revenue held steady compared to the prior quarter and rose from the year-ago quarter. Gross profit increased in both comparisons, outpacing the change in cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue held steady compared to the prior quarter and rose from the year-ago quarter. Gross profit increased in both comparisons, outpacing the change in cost of revenue, leading to an improved gross margin.
- The primary driver of margin improvement was the rise in gross profit, which grew faster than revenue in both the sequential and year-over-year comparisons.
- Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable sequentially and higher year-over-year, while cost of revenue was similar sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.8%
Gross profit
$926.4M
Revenue
$3.2B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.1B | $851.2M | $2.2B | 27.8% |
| Dec 31, 2023 | $3.0B | $821.4M | $2.2B | 27.1% |
| Mar 31, 2024 | $3.2B | $897.3M | $2.3B | 28.2% |
| Jun 30, 2024 | $3.2B | $926.4M | $2.3B | 28.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of margin improvement was the rise in gross profit, which grew faster than revenue in both the sequential and year-over-year comparisons.
Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable sequentially and higher year-over-year, while cost of revenue was similar sequentially and higher year-over-year.
Monitor the trend of operating cash flow, which the filing notes as a principal source of liquidity.