Lumentum Holdings Inc. stock research
FY2024 Q3
Lumentum Holdings (LITE) Gross Margin — Quarter Ended Mar 30, 2024
For the quarter, revenue was slightly lower than the prior quarter, cost of revenue was higher, and gross profit decreased, resulting in a weakened gross margin. Compared to the same quarter a year ago, revenue was lower and cost of revenue was substantially higher, leading to a much weaker gross margin.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q3
For the quarter, revenue was slightly lower than the prior quarter, cost of revenue was higher, and gross profit decreased, resulting in a weakened gross margin. Compared to the same quarter a year ago, revenue was lower and cost of revenue was substantially higher, leading to a much weaker gross margin.
- The most observable margin driver is the increase in cost of revenue relative to revenue, which directly reduced gross profit.
- Sequentially, gross margin weakened from the prior quarter as revenue remained nearly flat while cost of revenue rose. Year-over-year, gross margin declined substantially, with both lower revenue and higher cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.2%
Gross profit
$59.5M
Revenue
$366.5M
Cost of revenue
$307.0M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-13.0 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 |
|---|---|---|---|---|
| Jul 1, 2023 | $370.8M | $89.6M | $281.2M | 24.2% |
| Sep 30, 2023 | $317.6M | $76.7M | $240.9M | 24.1% |
| Dec 30, 2023 | $366.8M | $64.0M | $302.8M | 17.4% |
| Mar 30, 2024 | $366.5M | $59.5M | $307.0M | 16.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
-1.2 pts
Year-over-year change
Apr 1, 2023
-13.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the increase in cost of revenue relative to revenue, which directly reduced gross profit.
Sequentially, gross margin weakened from the prior quarter as revenue remained nearly flat while cost of revenue rose. Year-over-year, gross margin declined substantially, with both lower revenue and higher cost of revenue.
Monitor the amortization of acquired developed intangibles, a component of cost of sales disclosed in the filing, for its impact on future gross margin.