Labcorp Holdings Inc. stock research
FY2024 Q3
Labcorp Holdings (LH) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the prior quarter. Cost of revenue rose in both comparisons, and gross margin weakened sequentially but was slightly lower than the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the prior quarter. Cost of revenue rose in both comparisons, and gross margin weakened sequentially but was slightly lower than the year-ago level.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while gross profit declined sequentially, indicating that cost of revenue grew faster than revenue in the current quarter.
- Compared to the immediately preceding quarter, gross margin weakened as revenue increased but gross profit decreased. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$904.4M
Revenue
$3.3B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $3.3B | $904.4M | $2.4B | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.2 pts
Year-over-year change
Sep 30, 2023
-0.3 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 growth and cost of revenue growth; revenue increased while gross profit declined sequentially, indicating that cost of revenue grew faster than revenue in the current quarter.
Compared to the immediately preceding quarter, gross margin weakened as revenue increased but gross profit decreased. Compared to the same quarter one year earlier, gross margin was slightly lower, with revenue and gross profit both higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in the current quarter compressed gross margin.