MA

Masco Corporation stock research

Mar 31, 2023

FY2023 Q1

Masco (MAS) Gross Margin — Quarter Ended Mar 31, 2023

Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit increased sequentially and decreased year-over-year, while cost of revenue decreased on both comparisons, resulting in gross margin improvement.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit increased sequentially and decreased year-over-year, while cost of revenue decreased on both comparisons, resulting in gross margin improvement.

  • The primary observable driver of the gross margin change was the reduction in cost of revenue relative to revenue. Cost of revenue declined on both a sequential and year-over-year basis, while revenue increased sequentially and declined year-over-year.
  • Compared to the prior quarter, gross margin improved. Compared to the same quarter one year ago, gross margin also improved.

Gross margin snapshot

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

Gross margin

33.8%

Gross profit

$669.0M

Revenue

$2.0B

Cost of revenue

$1.3B

Quarter-over-quarter change

n/a

Year-over-year change

+1.8 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$2.0B$669.0M$1.3B33.8%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver of the gross margin change was the reduction in cost of revenue relative to revenue. Cost of revenue declined on both a sequential and year-over-year basis, while revenue increased sequentially and declined year-over-year.

Compared to the prior quarter, gross margin improved. Compared to the same quarter one year ago, gross margin also improved.

Monitor the trend in cost of revenue relative to revenue, as it has been the key factor in margin changes.