LI

Lennox International Inc. stock research

Dec 31, 2023

FY2023 Q4

Lennox International (LII) Gross Margin — Quarter Ended Dec 31, 2023

In the current quarter, revenue and gross profit increased compared to the year-ago quarter but decreased compared to the preceding quarter. Gross margin improved from the year-ago level but weakened sequentially.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

In the current quarter, revenue and gross profit increased compared to the year-ago quarter but decreased compared to the preceding quarter. Gross margin improved from the year-ago level but weakened sequentially.

  • The strongest observable margin driver is the year-over-year improvement in gross margin, as the metric rose from a lower level.
  • Sequentially, gross margin weakened as revenue and gross profit declined while cost of revenue also decreased. Year-over-year, gross margin strengthened as revenue and gross profit increased while cost of revenue was lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

30.8%

Gross profit

$356.2M

Revenue

$1.2B

Cost of revenue

$798.6M

Quarter-over-quarter change

-0.5 pts

Year-over-year change

+4.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.0B$306.6M$742.8M29.2%
Jun 30, 2023$1.4B$457.8M$953.6M32.4%
Sep 30, 2023$1.4B$428.5M$937.8M31.4%
Dec 31, 2023$1.2B$356.2M$798.6M30.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

-0.5 pts

Year-over-year change

Dec 31, 2022

+4.8 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, as the metric rose from a lower level.

Sequentially, gross margin weakened as revenue and gross profit declined while cost of revenue also decreased. Year-over-year, gross margin strengthened as revenue and gross profit increased while cost of revenue was lower.

Monitor the trend in cost of revenue relative to revenue in the upcoming quarter.