L3Harris Technologies, Inc. stock research
FY2023 Q1
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue, gross profit, and gross margin all decreased compared to the prior quarter, while cost of revenue remained flat. Compared to the same quarter last year, revenue increased but gross profit was unchanged, resulting in a lower gross margin as cost of revenue grew.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue, gross profit, and gross margin all decreased compared to the prior quarter, while cost of revenue remained flat. Compared to the same quarter last year, revenue increased but gross profit was unchanged, resulting in a lower gross margin as cost of revenue grew.
- The most notable metric relationship is the divergence between revenue and cost of revenue; cost of revenue remained unchanged from the prior quarter despite a drop in revenue, and rose at a faster rate than revenue year over year.
- Compared to the immediately preceding quarter, gross margin weakened as revenue declined while cost of revenue held steady. Year over year, gross margin also weakened as revenue growth was offset by a proportionally larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.1%
Gross profit
$1.2B
Revenue
$4.5B
Cost of revenue
$3.3B
Quarter-over-quarter change
n/a
Year-over-year change
-4.2 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 | $4.5B | $1.2B | $3.3B | 26.1% |
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
Apr 1, 2022
-4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable metric relationship is the divergence between revenue and cost of revenue; cost of revenue remained unchanged from the prior quarter despite a drop in revenue, and rose at a faster rate than revenue year over year.
Compared to the immediately preceding quarter, gross margin weakened as revenue declined while cost of revenue held steady. Year over year, gross margin also weakened as revenue growth was offset by a proportionally larger increase in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as it has been the primary factor in margin compression.