L3Harris Technologies, Inc. stock research
FY2023 Q2
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was higher than both the prior quarter and the same quarter a year earlier, while gross profit remained virtually unchanged. Gross margin weakened as cost of revenue rose at a faster pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was higher than both the prior quarter and the same quarter a year earlier, while gross profit remained virtually unchanged. Gross margin weakened as cost of revenue rose at a faster pace than revenue.
- The rise in cost of revenue was the most notable factor, as it absorbed the entire revenue increase and kept gross profit stable.
- Gross margin was lower compared with both the immediately preceding quarter and the year-ago quarter, driven by cost growth outpacing revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.3%
Gross profit
$1.2B
Revenue
$4.7B
Cost of revenue
$3.5B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-4.4 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% |
| Jun 30, 2023 | $4.7B | $1.2B | $3.5B | 25.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.8 pts
Year-over-year change
Jul 1, 2022
-4.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The rise in cost of revenue was the most notable factor, as it absorbed the entire revenue increase and kept gross profit stable.
Gross margin was lower compared with both the immediately preceding quarter and the year-ago quarter, driven by cost growth outpacing revenue growth.
Monitor the trend of cost of revenue relative to revenue in coming periods.