MA

Masco Corporation stock research

Jun 30, 2023

FY2023 Q2

Masco (MAS) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the same quarter one year earlier.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the same quarter one year earlier.

  • Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue. The relationship between cost of revenue and revenue shifted favorably.
  • Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was stable, while gross margin improved.

Gross margin snapshot

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

Gross margin

36.2%

Gross profit

$769.0M

Revenue

$2.1B

Cost of revenue

$1.4B

Quarter-over-quarter change

+2.3 pts

Year-over-year change

+3.5 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%
Jun 30, 2023$2.1B$769.0M$1.4B36.2%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+2.3 pts

Year-over-year change

Jun 30, 2022

+3.5 pts

What the margin says

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

Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger increase in gross profit relative to revenue. The relationship between cost of revenue and revenue shifted favorably.

Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower but gross profit was stable, while gross margin improved.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin sustainability.

MAS Gross Margin — Quarter Ended Jun 30, 2023