Lennox International Inc. stock research
FY2023 Q3
Lennox International (LII) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the previous quarter but higher than the same quarter last year. Gross profit decreased sequentially while cost of revenue also declined, resulting in a lower gross margin; however, gross profit increased year-over-year as cost of revenue rose less than revenue, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the previous quarter but higher than the same quarter last year. Gross profit decreased sequentially while cost of revenue also declined, resulting in a lower gross margin; however, gross profit increased year-over-year as cost of revenue rose less than revenue, leading to a higher gross margin.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose from the prior-year quarter. A concrete item to monitor is the sequential decline in gross margin from the immediately preceding quarter.
- Compared with the immediately preceding quarter, gross margin weakened, as revenue was stable while gross profit decreased. Compared with the same quarter one year earlier, gross margin improved significantly, driven by higher revenue and a proportionally smaller increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.4%
Gross profit
$428.5M
Revenue
$1.4B
Cost of revenue
$937.8M
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+4.5 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 | $1.0B | $306.6M | $742.8M | 29.2% |
| Jun 30, 2023 | $1.4B | $457.8M | $953.6M | 32.4% |
| Sep 30, 2023 | $1.4B | $428.5M | $937.8M | 31.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-1.1 pts
Year-over-year change
Sep 30, 2022
+4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which rose from the prior-year quarter. A concrete item to monitor is the sequential decline in gross margin from the immediately preceding quarter.
Compared with the immediately preceding quarter, gross margin weakened, as revenue was stable while gross profit decreased. Compared with the same quarter one year earlier, gross margin improved significantly, driven by higher revenue and a proportionally smaller increase in cost of revenue.
Monitor the sequential gross margin trend, as the decline from the prior quarter may reflect seasonal patterns noted in the company's filing regarding working capital needs.