Lumentum Holdings Inc. stock research
FY2024 Q1
Lumentum Holdings (LITE) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased compared to both the previous quarter and the same quarter last year, leading to a lower gross profit. Gross margin remained stable from the prior quarter but weakened relative to the year-ago period, as cost of revenue did not decline proportionally with revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue decreased compared to both the previous quarter and the same quarter last year, leading to a lower gross profit. Gross margin remained stable from the prior quarter but weakened relative to the year-ago period, as cost of revenue did not decline proportionally with revenue.
- The decline in revenue was the most visible factor, accompanied by a smaller reduction in cost of revenue compared to the year-ago quarter.
- Compared to the preceding quarter, gross margin was nearly unchanged. Versus the same quarter one year earlier, gross margin was significantly lower, driven by a larger relative decline in revenue than in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.1%
Gross profit
$76.7M
Revenue
$317.6M
Cost of revenue
$240.9M
Quarter-over-quarter change
-0.0 pts
Year-over-year change
-15.6 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $383.4M | $112.0M | $271.4M | 29.2% |
| Jul 1, 2023 | $370.8M | $89.6M | $281.2M | 24.2% |
| Sep 30, 2023 | $317.6M | $76.7M | $240.9M | 24.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
-0.0 pts
Year-over-year change
Oct 1, 2022
-15.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in revenue was the most visible factor, accompanied by a smaller reduction in cost of revenue compared to the year-ago quarter.
Compared to the preceding quarter, gross margin was nearly unchanged. Versus the same quarter one year earlier, gross margin was significantly lower, driven by a larger relative decline in revenue than in cost of revenue.
Monitor the amortization of acquired developed intangibles within cost of revenue, as disclosed in the filing.