Lennox International Inc. stock research
FY2024 Q3
Lennox International (LII) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was consistent with the prior quarter, while cost of revenue increased, leading to a slightly higher gross profit but a lower gross margin. Compared to the same quarter last year, revenue and gross profit both rose, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was consistent with the prior quarter, while cost of revenue increased, leading to a slightly higher gross profit but a lower gross margin. Compared to the same quarter last year, revenue and gross profit both rose, resulting in an improved gross margin.
- The sequential margin decline was primarily driven by a larger increase in cost of revenue relative to revenue. Year-over-year margin improvement was supported by revenue growth that outpaced cost growth.
- Sequentially, gross margin weakened as cost of revenue rose more than revenue. Year over year, gross margin strengthened 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
32.6%
Gross profit
$488.4M
Revenue
$1.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $1.2B | $356.2M | $798.6M | 30.8% |
| Mar 31, 2024 | $1.0B | $340.0M | $707.1M | 32.5% |
| Jun 30, 2024 | $1.5B | $488.2M | $962.9M | 33.6% |
| Sep 30, 2024 | $1.5B | $488.4M | $1.0B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.0 pts
Year-over-year change
Sep 30, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential margin decline was primarily driven by a larger increase in cost of revenue relative to revenue. Year-over-year margin improvement was supported by revenue growth that outpaced cost growth.
Sequentially, gross margin weakened as cost of revenue rose more than revenue. Year over year, gross margin strengthened with revenue and gross profit both higher.
Monitor the trend in cost of revenue relative to revenue for potential margin pressure.